Intel Expecting Apple to Transition to Custom ARM-Based Chips Starting in 2020

Apple is planning to ditch Intel and transition to Mac chips starting in 2020, based on multiple rumors ^(https://www.appmarsh.com/2018/04/02/apple-custom-mac-chips-2020/) we’ve heard in the past from Bloomberg. Axios ^(https://www.axios.com/apple-macbook-arm-chips-ea93c38a-d40a-4873-8de9-7727999c588c.html) today confirmed Bloomberg‘s reporting and said that multiple sources have suggested Apple will transition to custom ARM-based chips next year.

According to Axios, developers and Intel officials are expecting Apple to begin using ARM-based chips in 2020.


The move to ARM-based chips is said to be part of Apple’s effort to make Macs, iPhones, and iPads work together and run the same apps. Bloomberg earlier this week said that by 2021, Apple wants developers to be able to create one app ^(https://www.appmarsh.com/2019/02/20/apple-universal-apps-ios-mac-coming-by-2021/) that will work on iPhones, iPads, and Macs.

Apple’s transition to a single app for all devices has already begun. Last year, Apple ported several of its iOS apps, such as Voice Memos, Stocks, and Home, to macOS. This year, Apple plans to let developers transition iPad ^(https://www.appmarsh.com/roundup/ipad/) apps to macOS, and in 2020, that will include iPhone apps. In 2021, then, developers will be able to make just one app that users can download on any of Apple’s platforms.

This transition will greatly increase the number of Mac apps available, and it will cut down on the amount of work developers have to put in to create a Mac app. It will also better unify Apple’s operating systems across all of its devices.

There have been rumors about Apple transitioning to ARM-based Macs for years now, and they have ramped up given the many Intel chip delays that have resulted in subsequent delays for Mac products. With its own ARM-based chips, Apple will not be tied to Intel’s chip release cycles.

Apple already makes its own A-series chips for the iPhone and the iPad, and there are also custom Apple chips in recent Macs — the T2. The T2 chip, in the iMac Pro ^(https://www.appmarsh.com/roundup/imac-pro/) and 2018 MacBook Pro ^(https://www.appmarsh.com/roundup/macbook-pro/), MacBook Air ^(https://www.appmarsh.com/roundup/macbook-air/), and Mac mini ^(https://www.appmarsh.com/roundup/mac-mini/) models, integrates several components including the system management controller, image signal processor, SSD controller, and a Secure Enclave with a hardware-based encryption engine. It powers the Touch Bar in the MacBook Pro and the Touch ID ^(https://www.appmarsh.com/roundup/touch-id/) feature in the MacBook Pro and MacBook Air.

Apple is a major Intel customer, responsible for approximately five percent of Intel’s annual revenue, so the transition to ARM-based chips will be a major blow for Intel, but a win for customers in the long run. Apple’s modern A-series chips for iPhone and iPad are already more powerful than many Intel chips on the market.

Tag: Intel ^(https://www.appmarsh.com/roundup/intel/)

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Apple’s Recent Leadership Changes Suggest Transition From iPhone Reliance to Focus on Services

A new report out today by The Wall Street Journal ^(https://www.wsj.com/articles/apple-executive-shake-up-readies-it-for-life-after-iphone-11550503767?mod=e2twd) takes a look at the recent shake ups to Apple leadership, and how the changes could be an indicator that the company is transitioning from relying on iPhone sales to prioritizing its services business and other divisions.

Newly appointed executive John Giannandrea also heads Siri ^(https://www.appmarsh.com/roundup/siri/) development


Specifically, the report claims that recent hires, departures, promotions, and restructurings have led to several projects being put on hold while the new managers reassess priorities. This has left many existing Apple employees “rattled” as they have become unaccustomed to such frequent changes in leadership prior to the shake up at the company.

The primary reasons for the shifts vary by division. But collectively, they reflect Apple’s efforts to transition from an iPhone-driven company into one where growth flows from services and potentially transformative technologies.

These changes include the promotion of John Giannandrea ^(https://www.appmarsh.com/2018/12/20/apple-ai-chief-john-giannandrea-promotion/) to senior vice president, from a machine learning and AI role. After his promotion, Giannandrea decided to move Bill Stasior, head of Siri, to a lower role at the company ^(https://www.appmarsh.com/2019/02/01/apple-exec-overseeing-siri-departs-role/). In terms of high-profile departures, retail chief Angela Ahrendts recently left Apple ^(https://www.appmarsh.com/2019/02/05/angela-ahrendts-leaving-apple/) after spending five years with the company. These three major changes happened within the past two-and-a-half months.

Along with the staffing updates, Apple has trimmed around 200 employees from its autonomous vehicle project, and continues to redirect much of its engineering resources into its streaming TV service ahead of the planned 2019 launch.

“This is a sign the company is trying to get the formula right for the next decade,” said Gene Munster, a longtime Apple analyst and managing partner at venture-capital firm Loup Ventures. “Technology is evolving, and they need to continue to tweak their structure to be sure they’re on the right curve.”

Now, Apple is focusing on building its services catalog and enhancing artificial intelligence features, which should in turn encourage more hardware sales. Replacing Stasior as the head of Siri, Giannandrea is said to be “looking to improve Siri‘s accuracy and performance.”

iPhone sales dipped over the 2018 holiday season, leading to many reports about Apple’s new plans to combat stagnating smartphone sales. The company is said to have cut back on new hires ^(https://www.appmarsh.com/2019/01/16/apple-cutting-back-on-new-hires-poor-iphone-sales/), and in January Apple lowered its revenue guidance ^(https://www.appmarsh.com/2019/01/02/apple-lowers-q1-2019-revenue-guidance/) for the first quarter of the 2019 fiscal year by up to $9 billion due to fewer iPhone upgrades than it anticipated.


At the same time, Apple’s services business hit an all-time high in Q1 2019 ^(https://www.appmarsh.com/2019/01/29/apple-services-revenue-q1-2019/), up 19 percent year-on-year. During the first fiscal quarter of 2019, Apple’s services business brought in $10.9 billion in revenue, including platforms like iTunes, the App Store ^(https://www.appmarsh.com/roundup/app-store/), the Mac App Store ^(https://www.appmarsh.com/roundup/mac-app-store/), Apple Music ^(https://www.appmarsh.com/roundup/apple-music/), Apple Pay ^(https://www.appmarsh.com/roundup/apple-pay/), and AppleCare ^(https://www.appmarsh.com/roundup/applecare/). Thanks to their success in the wake of flagging iPhone sales, these services are expected to be a growing focus for the company over the next few years.

Tags: Angela Ahrendts ^(https://www.appmarsh.com/roundup/angela-ahrendts/), John Giannandrea ^(https://www.appmarsh.com/roundup/john-giannandrea/)

This article, “Apple’s Recent Leadership Changes Suggest Transition From iPhone Reliance to Focus on Services ^(https://www.appmarsh.com/2019/02/18/apples-leadership-changes-services/)” first appeared on appmarsh.com ^(https://www.appmarsh.com/)

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