Apple Chooses Intel as New Chip Maker, Raises Questions on IBM and Microsoft

Strategic Insights -

A significant development in the computer industry has taken place as Apple has chosen Intel as its new chip maker, replacing IBM, which has been providing chips for Apple's computers for over a decade. This move is significant, as it will require Apple to rewrite its basic software and potentially change its product designs. The reasons behind this change are reportedly due to IBM's inability to meet demand and lack of innovation compared to Intel.

Key Takeaways:

  • Apple's decision to switch to Intel chips marks a significant change in the company's strategy, requiring a major overhaul of its software and potentially leading to new product designs.
  • The move is driven by IBM's inability to meet demand and lack of innovation, as evidenced by its difficulty in producing fast G5 chips for Apple's laptops.
  • Ken Mingis, head of the Macintosh Knowledge Center, notes that Intel chips are more efficient and generate less heat, allowing for more flexibility in Apple's laptop line.
  • The shift may not lead to cheaper computers, as Apple's reputation is built on higher-end products.
  • The news comes as Microsoft has agreed to European Union demands to make its Windows operating system more accessible to competitors, but has yet to agree to publish its source code.

Statistics:

  • Apple has been building computers using IBM and Motorola chips for over 10 years.
  • Intel is the world's largest chip maker, with its chips already used in Dell and Hewlett-Packard computers.
  • The G5 chip, produced by IBM, generates too much heat for Apple's laptops.
  • European Union fines could have reached $2.3 billion if Microsoft had failed to meet the June 1st deadline.
  • The deadline for the European Union to decide if Microsoft has met its demands is currently unknown.

Sources:

  • John Dimsdale, "Marketplace"
  • Ken Mingis, Head of the Macintosh Knowledge Center, Computerworld