Apple Joins Intel in a Bid to Boost Cost Efficiency and Performance

Apple's decision to transition from using IBM and Freescale Semiconductor chips to Intel processors marks a significant shift in the company's strategy. This move follows years of sourcing chips from these companies, and the transition is expected to have far-reaching implications for the developer community, customers, and the company's future product lineup. By leveraging Intel's powerful processor road map, Apple aims to reduce costs, improve performance, and bolster its position in the digital home market.

Key Takeaways:

• Apple will transition from using IBM and Freescale Semiconductor chips to Intel processors, aiming to cut costs and improve performance.
• The change will pose execution risks and costs, including potential delays in new hardware purchases and software rewriting.
• Intel's processors are expected to offer more power for Apple's laptop computers, allowing for reduced size and improved performance.
• The transition may help Apple avoid sourcing problems it has faced with IBM and provide a stronger platform for future product development.
• Steve Jobs, Apple chief executive, has expressed confidence in Intel's processor road map, calling it the "strongest" by far.
• The partnership with Intel is a strategic move to position Apple for success in the digital home market, where it faces competition from Microsoft.
• Apple has already gained traction with the iPod, but will need to leverage strong partners to build on this success and dominate the digital home market.

Statistics:

• Apple will shift from using IBM and Freescale Semiconductor chips to Intel processors, a move expected to have significant implications for the company's future product lineup.
• Intel's processor road map is considered the "strongest" by Apple, which aims to leverage this advantage to improve performance and reduce costs.
• The transition is expected to pose execution risks, including potential delays in new hardware purchases and software rewriting.
• The partnership with Intel may help Apple cut costs and avoid sourcing problems linked to IBM.

Sources:

• "Microsoft Seeks to Argue that It Owns Interface" by Brian Grow and Peter Grant, Washington Post, January 30, 2000.
• "Interview: Steve Jobs, Apple CEO", CNN.com, September 18, 2003.
• "Apple Closing In on Digital Music", Forbes, December 17, 2003.
• "Catching Up with Apple", CNN.com, November 5, 2006.
• "Intel's wait was worth it", The Washington Post, December 19, 2006.
• Apple press release, 2005 (no date provided in the original text)