Apple to replace Intel chips with self-customized chips

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Apple to initiate building it customized chips for its iPhones, iPads and mac systems by replacing the Intel chips manufactured by Intel Corp.

The new project known as Kalamata to begin as earliest by 2020. The project, which executives have approved, probably will result in a multi-step transition. These changes might be a challenging issue for Intel, apple offers 5% of its annual revenue to the chip maker.

At present, all the apple device main processors designed by apple and technology from Arm Holdings Plc. Intel chips remain some of the major processor components designed by others inside Apple’s product portfolio. The company declined to comment. Intel said, “We don’t comment on speculation about our customers.”

Intel shares dropped as much as 9.2%, the biggest intra-day drop in more than two years, on the news. They ended the day down 6.1% at $48.92.

By using its own chips, Apple would be able to more tightly integrate new hardware and software. Potentially resulting in systems with better battery life similar to iPads, which use Apple chips.

While Mac computers with Intel chips run on a different system, called macOS. Apple has slowly been integrating user-facing features over the last several years, and it more recently started sharing lower-level features such as a new file management system.

Marzipan OS

The bigger activity to influence Macs to work more like iPhones. Apple is taking a shot at another product stage, inside named Marzipan, for discharge as right on time as this year that would empower clients to run iPhone and iPad applications on Mac PCs.

The company has also previously released Macs with ARM Holdings-based co-processors, which run an iOS-like operating system, for specific functions such as security. The latest MacBook Pro and iMac Pro include the co-processors.

Moreover, Apple plans to add that chip to a new version of its Mac Pro, to be released by next year, and new Mac laptops this year.