“The alliance with the world’s biggest chipmaker will put Jobs & Co. on an equal footing with PC rivals and will open many more new doors,” Cliff Edwards writes in an article titled, “Just What Apple Needs: Intel” for BusinessWeek. “For Intel, the rewards are clear. CEO Paul Otellini, in a December interview with BusinessWeek, pointed out that Intel gets a new customer for its chips, ranging from microprocessors for Apple computers to flash memory for the iPod lineup.”
“But what does Apple gain from Intel? For starters, it’ll finally be on even footing with PC giants such as Dell and Hewlett-Packard in terms of chip performance. Apple had been hobbled for years, particularly in the key area of notebook PCs,” Edwards writes. “Apple will “get flexibility and a partner in Intel that can scale beyond even what they need,” notes PC analyst Richard Shim at researcher IDC. Apple has proved, however, that it brings much more to the table: Innovation that moves whole industries. Indeed, proponents of the switch to Intel chips note that Apple systems debuting this year will be the only hardware capable of running all four popular classes of software — OS X, Java applications, Linux, and Windows at near-native, or optimal, speeds. That opens the potential for putting just about every consumer application on the planet on an Apple machine.”
“Apple now needs Intel’s chip arsenal in what’s fast becoming a pitched battle to dominate video, from downloads over the Internet to high-definition DVD players,” Edwards writes. “To win, Jobs is counting on Apple’s famed design chops and reputation for making complex technologies appear deceptively simple. Analysts and rivals alike reckon he’ll succeed to some degree, with many expecting Apple to double its PC market share to about 6% worldwide in the next year… With the playing field leveled for the first time in Apple’s history against its PC competitors, expect nothing less than for it to take a huge bite out of the market.”
Full article here.
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