The Microchip War Heats Up: Apple and Allies Introduce PowerPC

Strategic Insights -

Apple Computer is set to introduce a powerful line of Macintosh machines built around the long-awaited PowerPC, a move aimed at breaking Intel's dominance of the desktop chip market. The PowerPC chip, developed by a collaboration between Apple, IBM, and Motorola, is expected to provide faster processing speeds, with the next-generation PowerPC for desktop computers, the 604, claimed to run twice as fast as today's 601 and current Intel Pentium chips.

Key Takeaways:

  • Apple's PowerPC chip is a result of a collaboration between Apple, IBM, and Motorola, which began in 1991 with the goal of breaking Intel's dominance of the desktop chip market.
  • The PowerPC chip results from a collaboration that began in 1991, with IBM, Apple, and Motorola joining forces to break Intel's dominance of the desktop chip market.
  • The PowerPC is up to five times faster than Apple's current top-line processor, and the 604, expected from IBM and Motorola, is claimed to run twice as fast as today's 601 and current Intel Pentium chips.
  • Apple's existing Macintosh software is not compatible with the PowerPC machines, making it crucial that software developers rewrite their programs to take advantage of the chip's speed.
  • Intel and Microsoft have combined net profit margins of $4 billion (or £2.7 billion) this year, leaving Apple, IBM, and Motorola with painfully thin margins.

Statistics:

  • 85% of personal computers in the US run on Intel's microprocessors and Microsoft's operating systems.
  • Apple, IBM, and Motorola limp along with painfully thin margins, while Intel and Microsoft reap the highest net profit margins among US companies of their size.
  • The 604, expected from IBM and Motorola, is claimed to run twice as fast as today's 601 and Intel Pentium chips.
  • The PowerPC chip results from a collaboration initiated in 1991.

Sources:

  • THE microchip war reaches new heights today when Apple Computer introduces a powerful line of Macintosh machines built around the long-awaited PowerPC (The Economist)
  • "Intel said that it would soon deliver its new Pentium chip, which would be faster than the PowerPC" (Compaq Vice-President Robert Stearns)
  • Apple and IBM are partnering on the PowerPC chip as an effort to break Intel's dominance in personal computer processors (IBM)