Analyst firm: ‘Apple not a critical customer for IBM’

Standard & Poor’s Equity Research has reiterated their “hold” rating on IBM after reports that Apple Computer could announce today that it will be switching to chips made by Intel. Apple currently uses IBM’s PowerPC chip–made in concert with Freescale Semiconductor.

S&P Equity Research noted, “We do not view Apple as a critical customer for IBM’s chips, and note that over the past year, and again at IBM’s analyst meeting in May, the company has emphasized its focus on supplying chips to the videogame console market.”

MacDailyNews Take: Not critical, yet.

[Attribution: Forbes]

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  1. woww…. i took off work to watch the broad cast… so if it isn’t going to happen… ouch.

    WIll MDN at least post a thread to says everything that is being said?

  2. from a bean counter point of view apple isn’t important to ibm, but from a long range strategic viewpoint, ibm is basically admitting they can’t make chips for computers (higher visibility and higher margins) and they are going to make chips for video game consoles, and they are going to lose the same war they lost to low-cost computer makers and someday they will be out of the video game market too.
    btw, is all of this possible changeover to intel the reason why apple hasn’t been marketing its computers lately? why sell more ppc computers when you are just going to annoy more new customers with a dead end technology?
    mw is “surface”, as in there is a lot going on below the surface here.

  3. Oh well. And to think that Apple had plans to reward IBM with contracts to supply major components for Apple ‘s CinemaPod video rental appliance which will rock the movie rental business, if IBM had only delivered the product on time.

    note to Intel: don’t make the same mistake!

  4. Maybe that’s the reason Apple is moving away from IBM. IBM doesn’t think there worth any effort as been shown by there lack of production and getting a working 3 gigahertz chip to market. Maybe this shift was the right move if anaylists think IBM doesn’t consider Apple a critical customer. Funny that Intel thinks if would be one of the biggest wins for them to get Apple.

  5. Not critical, yet

    of course being an analyst.. there’s no punishment for ever being wrong.. but I want to say kudos to MDN for saying it right.

    The iPod.. huge phenomenal hit.. when iTMS came out sales skyrocketed.

    If Apple brings out an iMovie media dock, or something like that, and says ‘ yeah, it’s runinng on intel DRM’d chips’ and they go on to sell like crazy..

    I mean.. you can’t just say, Apple’s not important.. cuz before you know it.. that iMovie rental service is going to be all the buzz and those docks are going to be selling like crazy.

  6. I don’t know what to think. Part of me says “Say it isn’t so”, but I want what is best for the platform, but I don’t want the headache of dealing with part of my company on PPC OS X, part on PPC OS 9, and part on Intel OS X. And all that software.

    Please Steve, announce a 3.0 GHZ chip and other goodies.

    Somebody wake me when it’s all over.

  7. Apple’s break with IBM stemmed from Jobs’ wish that IBM make a larger variety of the PowerPC processors used in Macintosh systems. IBM balked because of concerns over the profitability of a low-volume business, reported.

    It sounds like IBM basically just refused to invest their time and money into the Apple corner. It is understandble why Jobs would be so upset with IBM. However, at the same time I can also see Jobs being stubborn and refusing to work with IBM out of spite rather than because Intel has something better to offer.

  8. Is this really any surprise except maybe it happend sooner than thought?

    IBM is becoming less a hardware company and more a service/consulting outfit.

    Selling off it’s laptop division should have said a lot about where IBM is heading.

    Sure they have the Cell but that’s in conjunction a few other companies.

    Point is, Apple is doing what it needs to do, the money is not in hardware for IBM anymore, they are almost like another Motorola, Apple is just not important enough.

    I just wish they went with AMD, but Intel has it’s hand in a lot more categories than AMD.

  9. I wonder if despite Steves upbeat spin this is really an Apple decision or a IBM decision as the fallout of getting the Xbox business. Or perhaps this was in fact a Microsoft decision. After all the only thing that MS does well these days is to use its weight to manipulate situations to its benefit. Could they, just as Apple are positioned to take serious market share from them in the year and a half plus til Longhorn ships, have made the only clever move possible when in negotiating their move to IBM they made sure that contractually IBM was faced with an effective choice between them or Apple. At least in the sense that development of chips for Apple would take a very poor second place to chips for them for the forseeable future. After all this has happened coincidence or not. If so one could also wonder if MS is in the process of screwing IBM for the second time in the long run.

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