“The financial impact of Apple’s potential move to dump Intel isn’t estimated to be that large,” Bill Maurer writes for Seeking Alpha. “According to Stifel analyst Kevin Cassidy, Apple only represented 4% of Intel’s revenues and 1% of profits last year.”
“Personally, I don’t think Intel bulls should take this as a shot against the company. While the Apple-Qualcomm relationship is extremely frosty, I don’t see a similar situation between Intel and Apple. I just believe this is a natural progression by Apple to bring more things in house, giving the company more control,” Maurer writes. “This probably is part of Apple’s plan for some of its cash pile, spending more on capital expenditures to build out required resources… The only way that this could have really hurt Intel moving forward is if Apple was planning on making a move down the PC price point ladder.”
“While the chipmaker would likely lose some revenues and profits, it’s not a major blow given all of the growth moves undertaken in recent years. For Apple, its a way to bring things in house more, allowing more control of product development,” Maurer writes. “In the end, that should tighten the Apple ecosystem, which means better products in the long run, a positive for shareholders.”
Read more in the full article here.
MacDailyNews Take: As we wrote earlier today:
It would hurt more than your average random beancounter would expect since Intel would no longer be included in the innovation leader’s personal computing designs.
Apple could come out with the next “MacBook Air” and Intel would have no earthly clue it was coming, dramatically slowing the ability of the PC dreck still using Intel’s constantly-delayed processors from knocking off Apple’s innovations.
Intel would be consigned to a bunch of Mac knockoff peddlers (HP, Lenovo, ASUS, Dell, etcetera). There are more benefits to being a part of computing’s innovation leader than mere units sold.
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