Apple Unlikely To Move To Intel Chips For iPad Or iPhone?
If Apple's only problem was that forthcoming tablets and smartphones made with Intel chips were simply speedier, as in more MIPs or FLOPS I could agree with Eassa's argument,. Apple could conceivably employ a custom ARM with mediocre speed bolted with fast graphics capability and try to compete. But speed is not the only dimension Intel has gained advantage. Intel-based tablets and smartphones should also enjoy far better battery life and while most consumers are ignorant about MIPS and FLOPS they are very well aware of battery life and how long they can go between having to charge up.
The other key differentiator is software. Tablets with Intel processors can run professional 64 bit Windows AND Android. This gives Intel tablets the enormous distinction of offering the user access to the millions of mature apps in the Windows ecosystem plus everything Android has to offer. While iPad is just iOS, with no access to MAC OS. The software distinction will be most visible on tablets initially but what Intel does for tablets this year, they will do to smartphones very soon.
Every day Apple delays getting on board the Intel train they will find themselves becoming less and less competitive in a sea of faster, better, and cheaper products with superior battery life and far broader software capability.
No-one wants to run PC apps on tablets or smartphones. The way you design an app for these form factors is completely different. For starters, you target the installed base which is mostly iOS or Android running ARM. It's going to be very difficult to suddenly change the installed base.
Apple just needs to make their products incrementally better to stay in business which they are slotted to do without needing to change their underlying microprocessor.
What makes you think Apple is not already working with Intel to switch to Intel processor possibly both Atom (in smaller devices) and Core in full-sized iPads, basically, similar to the MS Surface Pro, but better implemented by Apple than by MS as usual.
I love it how people write in blogs and postings about how Apple needs to consider switching to Intel processors as if that is some huge insight that Apple never considered and is not already doing. We now know that Apple even wanted Intel to foundry the chips for the original iPhone, but Intel declined because what Apple was willing to pay per unit was deemed too little. Also, of course, at that time Apple had recently converted Macs to Intel.
So, I am sure that using Intel chips for iOS devices has never been far from Apple's attention and that they have been working in secret with Intel to make that conversion by 2014 or maybe even Fall of 2013 with the next generation of iPads. That would be nice, but my expectation is to see the switch in 2014.
Either way, good for Apple and HUGE for Intel.
That is why I am long long term both AAPL and INTC.
I have owned AAPL since 2006 when they converted to Intel processors in Mac and well before the iPhone was even a rumor. And I have owned Intel since 2003 taking the opportunity to buy after the crash and adding as Intel began paying larger and larger dividends.
I expect nice increases in both INTC and AAPL in 2014 and maybe even later this year. But I can wait.
I'll just bide my time counting the money I am collecting from INTC and AAPL dividends.
Again Apples failure to innovate and adapt may end up being it's downfall. Just good enough ARM, will NOT be good enough. Apple ignores intel technology at its own peril. Apple should heed the lesson learnt by intel. Don't tell the market or consumer what they should have. Listen to the market and produce products that the market want. Clearly the market will want convertible Tablet PC's. I know this because a lady friend of mine, who is a huge Macbook fan and totally technology illeterate, said the other day there are new notebooks coming out that double as tablets. I was surprised by comments from her. Guess what, little does she know, apple has decided that iPad is just good enough for her needs?