Analyst: Mac transition to Apple silicon to save company up $850M a year

Apple’s move away from Intel chips in its Mac line in favor of its own custom silicon could save the Cupertino Colossus up to $850 million annually, Citi analyst Jim Suva believes.

Apple on Monday, June 22, 2020 announced it will transition the Mac to its world-class custom silicon to deliver industry-leading performance and powerful technologies.
Apple on Monday, June 22, 2020 announced it will transition the Mac to its world-class custom silicon to deliver industry-leading performance and powerful technologies.

Apple yesterday also introduced macOS 10.16 Big Sur, the next major release of macOS, which delivers its biggest update in more than a decade and includes technologies that will ensure a smooth and seamless transition to Apple silicon. Developers can easily convert their existing apps to run on Apple silicon, taking advantage of its powerful technologies and performance. And for the first time, developers can make their iOS and iPadOS apps available on the Mac without any modifications.

Rob Lenihan for TheStreet:

Analysts on Tuesday were reacting to Apple’s decision to move away from Intel chips in its Mac line in favor of its own custom-built processors.

Citi analyst Jim Suva said the core reason for this change was to enable Apple to “better optimize its hardware and software road map for a more optimal consumer experience across multiple devices as well as not having to rely on external suppliers as much.”

Suva, who affirmed a buy rating and $400 price target on the shares, said he expected the transition to save Apple $425 million to $850 million a year.

MacDailyNews Take: Macs running on Apple custom silicon will be a boon to users, developers, and Apple. It’s a win-win-win move for which we’ve been hoping for years!

19 Comments

    1. “Any how many billions will users need to spend to buy new software AGAIN????”

      You are either an Android/Windows loving troll or a cheap assed idiot. There is no cost in the near term, and considering that users upgrade their software (or should) about every three years there is no impact arising from the shift at all.

        1. Hal, try reading his comment. Nowhere does he tell you to buy anything at anytime. And who are you to tell anyone not to comment? That a privilege for your own self?

    1. If we are to believe the sales pitch that most existing apps that conform to developer guidelines can be transitioned into a universal app in a week, they shouldn’t charge for that sort of minor upgrade. I have trouble believing that there aren’t going to be at least some hardware dependencies that will require testing and debugging. If that proves to be very extensive, developers may need to recoup the money from their existing customers, rather than providing a free upgrade.

      1. According to Apple, current software does not have to be upgraded to run on the new A-Series processors. In 1 – 3 years when you upgrade your hardware all softwares will be recompiled, AND TESTED, to ARM processors. Until then Rosetta 2 does the translation to allow you to continue to use your legacy softwares.

        Jeez did anyone watch the Keynote before asking these questions?

        1. Greggthurman,
          Fesarius wasn’t asking whether he could run his existing software under Rosetta 2 emulation. Yes he can, but emulation carries an unavoidable performance penalty. He was asking if developers would be charging for the upgraded native version of their software. Again, that depends on how extensive the recompilation and testing process proves to be. His question was perfectly natural and was not answered by the Keynote.

  1. Customers won’t see any of those savings… this just means Apple will make even more money by selling locked-in laptops that can’t run anything but macOS natively…

    I genuinely hope someone will come in and prove me wrong by saying Linux and Windows ARM can run on these devices, I really do… but this seems to me like Apple’s way to force people to upgrade hardware every so many years just to use the latest OS, even preventing them from using other alternatives when macOS support dies…

  2. Well on the positive side some of my iPhone apps will be able to run on my desktop. Not a huge deal but I get tired of dragging the phone out every time I need to change the thermostat, check security cameras or use any other iOS only app.

  3. I am a noob so forgive these questions. I am not certain anyone will know the answers yet. Will Apple Silicon work with Thunderbolt 3/4 or will we be left USB-C/USB4? Will Apple Silicon work with AMD GPUs if the Apple GPU comes up short running graphic/compute intensive applications?

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