Cringley: Apple and Intel to merge; Steve Jobs finally beats Bill Gates

What’s behind Apple’s announcement that future Macs will use Intel processors “is so baffling and staggering that it isn’t surprising that nobody has yet figured it out until now,” Robert X. Cringely writes. “Apple and Intel are merging.”

…Intel hates Microsoft. It hasn’t always been that way, but in recent years Microsoft has abused its relationship with Intel and used AMD as a cudgel against Intel. Even worse, from Intel’s standpoint Microsoft doesn’t work hard enough to challenge its hardware. For Intel to keep growing, people have to replace their PCs more often and Microsoft’s bloatware strategy just isn’t making that happen, especially if they keep delaying Longhorn.

Enter Apple. This isn’t a story about Intel gaining another three percent market share at the expense of IBM, it is about Intel taking back control of the desktop from Microsoft.

Intel is fed up with Microsoft. Microsoft has no innovation that drives what Intel must have, which is a use for more processing power. And when they did have one with the Xbox, they went elsewhere.

So Intel buys Apple and works with their OEMs to get products out in the market. The OEMs would love to be able to offer a higher margin product with better reliability than Microsoft. Intel/Apple enters the market just as Microsoft announces yet another delay in their next generation OS. By the way, the new Apple OS for the Intel Architecture has a compatibility mode with Windows (I’m just guessing on this one).

This scenario works well for everyone except Microsoft. If Intel was able to own the Mac OS and make it available to all the OEMs, it could break the back of Microsoft. And if they tuned the OS to take advantage of unique features that only Intel had, they would put AMD back in the box, too. Apple could return Intel to its traditional role of being where all the value was in the PC world. And Apple/Intel could easily extend this to the consumer electronics world. How much would it cost Intel to buy Apple? Not much. And if they paid in stock it would cost nothing at all since investors would drive shares through the roof on a huge swell of user enthusiasm.

That’s the story as I see it unfolding. Steve Jobs finally beats Bill Gates. And with the sale of Apple to Intel, Steve accepts the position of CEO of the Pixar/Disney/Sony Media Company.

Much, much more in the full article here.

Related MacDailyNews articles:
Mossberg: Switch to Intel will strengthen Apple and the Mac – June 08, 2005
Apple’s Intel shift could result in market share gain – June 08, 2005
Why buy a Dell when Apple ‘Macintel’ computers will run both Mac OS X and Windows? – June 08, 2005
Windows users who try Apple’s Mac OS X Tiger might not want to go back – June 07, 2005

91 Comments

  1. Intel buy Apple?

    I don’t think so. Besides that fact that Jobs would never allow it, chips are becomming a commodity.

    With $6 billion in reserves, Apple could buy a controlling interest in Intel easily without a Apple stock being involved.

  2. I’m sure stranger theories have been formulated, but this one is pretty off the wall. The writer does have one thing right; Steve is a control freak. No way he’d stay on board IF such a “merger” were to happen.

  3. Uh, ok.

    So, Intel attempts revenge on Microsoft. So, Microsoft dumps Intel entirely, pulls AMD under its wing (which AMD would just LOVE) and puts Intel AND Apple out of business in a matter of weeks/months.

    WAY TOO RISKY, CRINGELY!

  4. Cringley has officially crossed the line to halfwit. It’s time to hang up the eccentric pundit cloak, retire to fishing in Alaska, and maybe finally do something with a computer instead of being a wannabe.

  5. “How much would it cost Intel to buy Apple? Not much.”

    As a shareholder I take offense to this statement. Apple is stronger now, financially, than it has ever been. Two years ago they’re revenue was barely $7 billion a year, now they’re approaching $14 billion and the outlook remains incredibly positive.

    I am not saying Intel couldn’t afford to buy Apple, I am sure they could. But it would cost them a hell of a lot.

  6. Yowza! I knew Intel was fed up with Microsoft, and Intel easily has the money, but I never imagined that Intel might actually BUY Apple (not that they have yet or actually will). This theory does account for the absence of AMD very well.

    If Intel keeps Apple’s ideas alive, together they could easily dethrone MS.

  7. Hey Hey Hey Robert! Let’s not get carried away here. Apple switching to Intel was a big change, yes. But let’s not let that catapult us into fantasy land, shall we?

  8. Many of you say Cringley is off his rocker, but how many of you said that same thing about anyone who brought up the possiblity of Mac on Intel just last week?

  9. Wow, in the imortal words of Ogre, “And what if ‘cat’ was really spelled ‘d-o-g’.” Don’t bogart that jay, Cringely. Pass the dutchie on the left hand side.

    Hey, MDN Magic Word = party! Dude, lay off the party, Cringley.

  10. Great this is how those rumors get started like Microsoft owning Apple. Tomorrow some PC guy is going to come up to me an say “I heard Intel Bought Apple!”

    “Sigh”

    Guess I’ll have to re-educate them again!

  11. Agreed it is a fantasy. Though I don’t doubt the Intel hatred. INtel and Apple can stay as two separate companies and still do what Cringley says they will. Microsoft is diversifying, so is Apple. Wait to see what operating system is running Intel Home PC platform. Cringley,
    Maybe Microsoft will start selling Windows for PPC.
    Usually Cringley is good and reasoned, this time he didn’t really set it up that much.

  12. Geee, what’s missing?

    *GASP* HARD NUMBERS!!!

    What the hell is this guy talking about? Buying Apple wouldn’t cost much? Yeah, I have an island he can buy too if he’s interested.

  13. I’m not going to say it won’t ever happen, but I’ll certainly say I hope it doesn’t. I don’t want Apple to ever sell to someone else. The only way I’d be interested in that scenario is if SJ was still in charge of the whole deal.

    Frankly, I don’t want Apple to put MS out of business. The best selling product is typically not the best product. Let MS sell their wares to the unwashed masses. Apple is for those of us who appreciate quality.

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