Apple Ditched Intel, and It Paid Off

An anonymous reader quotes a report from CNBC, written by Todd Haselton: Apple's decision to ditch Intel paid off this year. The pivot allowed Apple to completely rethink the Mac, which had started to grow stale with an aging design and iterative annual upgrades. Following the divorce from Intel, Apple has launched far more exciting computers which, paired with an ongoing pandemic that has forced people to work and learn from home, have sent Apple's Mac business soaring. It wasn't always a given. When Apple announced its move away from Intel in 2020, it was fair to question just how well Apple could power laptops and desktop computers. Apple has used in-house chips for iPhones and iPads but had been selling Intel-powered computers for 15 years. It wasn't clear how well its macOS desktop software would work with apps designed to run on Intel chips, or whether its processors would offer any consumer benefits and keep up with intensive tasks that people turned to MacBooks to run. Those fears were quickly quelled. The first M1 Apple chip was launched in 2020 in a MacBook Air laptop. It was more powerful than Intel's chip while offering longer battery life and enabling a fanless design, which helped keep Apple's new MacBook Air even quieter. It proved to be an early success. In April 2021, CEO Tim Cook said during the company's fiscal second-quarter earnings call that the M1 chip helped fuel the 70.1% growth in Apple's Mac revenue, which hit $9.1 billion during that quarter. The growth continued in fiscal Q3, when Mac revenue was up 16% year over year. That quarter, it launched the all-new iMac, which offered a redesigned super-thin metal body that looks like a screen propped up on a stand. It's slimmer than the Intel models that came before it, while offering other benefits, like a much better webcam, great speakers and a much sharper display than the models it replaced. And Apple made the launch more exciting by offering an array of colors for the iMac, which it hadn't done since it shipped the 1999 iMac. There was a slowdown in fiscal Q4, when Mac revenue grew just 1.6%, as Apple, like all manufacturers, saw a slowdown from the burst of sales driven by the start of the pandemic and dealt with supply chain woes. But fiscal Q4 sales didn't include revenue from its most exciting new computer of the year. Apple's fiscal Q1 earnings in January will give an indication of how well all its new computers are selling. But it's clear the move from Intel has allowed Apple to move full speed ahead with its own chip development, much like it does for iPhones and iPads, the latter of which has yet to be matched by any other tablet on the market. It's no longer beholden to delays that plagued Intel, which started to lag behind AMD with its new 7nm chips. And Apple has full control over its "stack," which means it can design new computer hardware and software together, instead of letting the power of another company's chips dictate what its computers can and can't do.

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