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The Street
The Street
Rob Lenihan

Intel Not Ready to Cash in Its Chips with Apple

Apple (AAPL) on Nov. 10, 2020, rattled the computer world with three simple words "Apple unleashes M1."

The computer giant was announcing the arrival of the M1, the first chip designed specifically for the Mac. Apple had already been using its Apple-designed chips in its iPhones and iPad devices.

"M1 is the first personal computer chip built using cutting-edge 5-nanometer process technology and is packed with an astounding 16 billion transistors, the most Apple has ever put into a chip," Apple said in a statement. "With its profound increase in performance and efficiency, M1 delivers the biggest leap ever for the Mac." 

While Apple was unleashing the M1, the company was also bringing down the curtain on its 15-year relationship with Intel (INTC).

Shutterstock/TheStreet

'Breakthrough Performance'

And Apple kept on leaping. In June, the computer giant announced the arrival of M2, which it said would take "the breakthrough performance and capabilities of M1 even further."

The company said the system-on-a-chip (SoC) design of M2 is built using enhanced, second-generation 5-nanometer technology, and consists of 20 billion transistors — 25% more than M1.

With all this activity, it would appear that Apple and Intel have gone their separate ways for good.

But don't tell that to Michelle Johnston Holthaus, Intel's executive vice president of the Client Computing Group.

Speaking at Intel's Innovation Event on Sept. 27, Holthaus, said the company "will never stop trying to get Apple to be a customer again," according to a tweet from Ian Cutress. 

"Poor Apple, stuck with those low-performance chips. Not even 4 GHz! Not even 200 W!" one person responded. 

"And yet…pretty damn powerful for what they are. It’s like Intel doesn’t understand the seismic shift away from x86…" another person tweeted.  

Cutress also tweeted that Intel accidentally puts a 34-core Raptor Lake wafer on its 13th Gen booth at the event in San Jose, Calif.

Apple Issues

"@PaulyAlcorn and I spotted an accidental leak from Intel on the show floor here at #IntelON." he wrote. "The booth staff thought it was Raptor Lake. Paul and I are recording a video to help explain what we're seeing. Paul's Processors #2 will post later this evening."

Separately, Apple was having some challenges recently following a report that suggested the world's biggest tech company will scrap plans to boost iPhone production amid fading consumer demand.

Bloomberg reported that Apple has instructed suppliers and assemblers to pare back plans to boost production of the newly-launched iPhone 14 by as many as 6 million units, opting instead to chase a target of 90 million -- roughly in-line with last year's tally and its early summer forecast -- for the second half of this year.

Ming-Chi Kuo, a Apple analyst at TF International Securities, tweeted: "Rumored Apple ditching iPhone production increase sounds a little bit weird to me."

"As I surveyed before, Apple had production switch plans from iPhone 14/14 Plus to iPhone 14 Pro/14 Pro Max/price-cut 13, but I didn't hear of any overall iPhone production increase plan," Kuo said.

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