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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 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!

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