Intel shares reacted poorly to the news that Apple would no longer need Intel chips and transitioned entirely to its own silicon.
Intel Corporation (NASDAQ:INTC) shares fell following Apple(NASDAQ: AAPL) announces that its new Mac Pro will use the M2 Ultra, a new chip manufactured by the company. Apple said the M2 Ultra is up to three times faster than Apple’s fastest Mac Pro computer with an Intel chip. INTC fell almost 5% on the day and closed at $29.86
Apple said the new Mac Pro will feature up to 192GB and start at $6,999. Apple also announced the Mac Studio and the Mac Pro, describing both products as “two of the most powerful Macs ever”. In addition, Apple said that the Mac Pro “completes the Mac transition to Apple silicon.” In 2020, Apple launched its own chip, the M1, for the first time, which was very successful.
Apple says new Mac Pro computer will start at $6,999
Intel struggles for in-house silicon outside Mac Pro and Mac Studio transitions
Intel shares may continue to decline following Apple’s move to make its own chips. Faced with competition from a rival semiconductor company, the company will have to redouble its efforts to snatch a bigger market share. amd (NASDAQ: AMD). The AMD company’s chips play an important role in data centers as well as for personal computers.
Apart from AMD, Intel also has to worry NVIDIA (Nasdaq: NVDA). Since the AI boom, Nvidia has gained ground as its chips are in high demand for AI services.
Aside from fighting off the competition, Intel’s numbers haven’t been impressive. Company in April informed of Q1 2023 figures, which showed the biggest quarterly loss in the company’s history. The first quarter results also show that Intel has posted losses for the second consecutive quarter. In addition, the first quarter marked Intel’s fifth consecutive quarter of sales declines.
As per the report, Intel’s quarterly revenue fell to $11.7 billion, a 36% year-on-year (YoY) decline. Furthermore, the company faced a 133% decrease in earnings per share. GAAP loss per share was reported as $0.66, compared with non-GAAP loss per share of $0.04.
Intel has also discontinued its line of bitcoin mining chips. Only a year after the Blockcell application-specific integrated circuit (ASIC) was announced, it announced in April that it would stop taking orders in October. Intel also estimates that it will ship the latest Blockcell ASICs by April 20, 2024. According to a spokesperson quoted in Reuters reports, Intel phased out the Blocksale 1000 Series ASIC line to prioritize IDM 2.0. The company’s IDM 2.0 strategy is to outsource chip-manufacturing with a focus on smaller and faster alternatives.
Apple moves away from Intel completely
an official apple Press release The announcement of the Mac Studio and Mac Pro describes the computers’ respective M2 Max and M2 Ultra chips. Apple said the M2 Max chip is “up to 6 times faster than the most powerful Intel-based 27-inch iMac,” while also touting the Mac Pro’s speed.
The Mac Studio is significantly cheaper than the Mac Pro, which starts at $1,999.
Tolu is a cryptocurrency and blockchain enthusiast based in Lagos. He likes to strip crypto stories down to the basics so that anyone anywhere can understand without a lot of background knowledge. When he is not delving deep into crypto stories, Tolu enjoys music, loves to sing and is an avid movie lover.
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