Apple, as influential and widespread as their products are, has always relied on a sort of isolation within their product line to create one of the most brand-loyal consumer bases in the world. IPhones can only be charged by the Apple-made Lightning Cable, whereas every other major manufacturer designs their smartphones to work with the standard micro-USB plug, which can also be used to charge bluetooth speakers and a variety of other gadgets. Between this lack of electronic compatibility and seamless internal product communication, whether it be via iMessage, iCal, Apple Maps, or iCloud, Apple has created a culture of self-reliance within its products, making it a blasphemous crime for a loyal Apple customer to venture into the world of the Android.
Seeking to walk further down the path of self-reliance, Apple is looking to eliminate its need for external chip manufacturer Intel, potentially dissolving a partnership that launched Apple’s Macs back into the forefront of technological innovation in 2005. Bloomberg Technology reports that Kalamata, the code name for the custom chip initiative, is a move towards more seamless communication between Apple products. By designing its own custom chip, Apple could not only enhance the interdependence of their devices, but allow the company to design new models on their own timeline and more quickly bring new features to their products.
Most of the elements within an Apple computer are designed in-house, except for the Intel processing chip. “We think that Apple is looking at ways to further integrate their hardware and software platforms, and they’ve clearly made some moves in this space, trying to integrate iOS and macOS,” said Shannon Cross, an analyst at Cross Research. “It makes sense that they’re going in this direction. If you look at incremental R&D spend, it’s gone into ways to try to vertically integrate their components so they can add more functionality for competitive differentiation.”
Intel may have an extended period of mourning after this particular breakup, with their shares dropping 9.2% on the day the story broke, the biggest intraday drop they’ve experienced in two years. But with Apple contributing only about 5% of Intel’s revenue, the chip manufacturer should be able to bounce back. The question is whether or not other computer manufacturers will follow suit and start designing their own chips in-house as well.
Kalamata may be Apple’s newest brainchild, but it’s only in its crawling stages. If successful, Apple computers would be the first and only major PC to use its own chips, so the frontier is brand new and thus likely being explored with caution. The incentive to explore this frontier in the first place is the possibility of being able to better integrate products within Apple. But Intel has been able to dominate the computer processing industry for over ten years due to their expertise in building these kind of technologies, and Apple will need to match the speed and precision of their processors if they want to keep their customer base as loyal as it is now.
iMacs and Macbooks bear an obvious resemblance to their iPhone, Apple Watch, and iPad brethren, with their app icons and signature sleek design designating them clear members of the Apple family. But the significantly older and more powerful Mac computers don’t always fit in perfectly with their handheld siblings. With Marzipan, Apple’s newest software platform, Mac computers will be able to run a more iOS-like system and will be suited for all of the apps that iPads and iPhones use. With a chip designed in-house for inter-device compatibility and software that makes a more consistent interface, the Apple family will be closer than ever.
If you enjoyed this article and want to receive more valuable industry content like this, click here to sign up for our digital newsletters!
Leave a Reply