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Apple Will Use Its Own Chip, $500 Million Can be Saved A Year

It has been rumoured for years that Apple may be developing their own chips for Mac computers. However, a recent report by Bloomberg revealed that by 2020, Apple could separate from Intel, which could save Apple $more than 500 million a year, according to Merrill Lynch.

Apple's choice of self-sufficiency is no longer a novelty. The company usually chooses to use its components as much as possible. This has been certified in many apple products. For example, iPhone, apple designed its own cell phone, function and operation system. So Apple gave up Intel's choice to use its own chip.


Apple Will Use Its Own Chip, $500 Million Can be Saved A Year

Apple Will Use Its Own Chip, $500 Million Can be Saved A Year

According to Wamsi Mohan, an analyst, he estimates that the apple can save $500 million a year by their own chips, because the apple will not have to pay any more to Intel. Of course, the previous reports also mentioned many other advantages of using self produced chips. In addition to saving money, its own manufacturing chip means that apple can further optimize their hardware and software without waiting for Intel's product release arrangements.

The report also pointed out that it would be a gradual process for apple to start using its own chips by 2020, which means it would not affect the entire product line at one time."The benefit to Apple would be two-fold: 1) aggregating development across iOS and MacOS can help lower the overall cost of R&D by potentially combining development teams and potentially reducing time to market for new products and Apps, and, 2) internally developing the processor can help save some cost vs. purchasing the processors from Intel,”

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