“When Apple introduces their new version of the iPhone 6 in the weeks ahead, I expect them to take an extraordinary amount of time to position its 20nm A8 processor as significantly better than Intel’s 14nm Broadwell across the full range of its mobile product line,” Ed McKernan writes for Seeking Alpha. “Apple’s marketing and branding will hopefully have the effect of bringing Intel low in order to get future access to the leading edge process technology at much lower costs. Going forward Intel should consider ramping its new process technologies with Apple’s mobile processors at the same time it ramps its newest mobile chips.”
“Apple knows Intel is getting more aggressive on 14nm Broadwell with the intention of squeezing the iPad but the company has other plans that are more long reaching and intended to ultimately outflank Intel,” McKernan writes. ” Yes Mac Air with x86 is important but interoperability between iOS and OS X is more so and it will be interesting to see how it rolls out. In reality, Intel is in the uncomfortable position of waiting to see how Apple’s A8 will be positioned at its launch. It is a reactive moment, not proactive, as has been its history.”
“Many analysts today do not foresee a move by Apple into Intel’s fabs,” McKernan writes. “The PC and mobile markets are now a foundry game and the company has to decide whether to step in with both feet or be exposed to competition from Samsung and TSMC. The returns from being an Apple foundry are much higher than most believe as the former will seek to stretch its mobile processor lead.”
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