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Will Apple Switch To Intel?

Chris Crum
Staff Writer
Published: 2005-05-23

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Yesterday, the Wall Street Journal reported that Apple Computer was in talks with Intel leading to speculation that Apple may put Intel chips in its Macs.

This speculation led to Apple shares going up $2.21, or 5.89%, closing at $39.76 yesterday. Intel shares went up 15 cents, or 0.57%, closing at $26.50.

Many analysts in the industry, however, find it unlikely that Apple will switch from IBM chips to Intel. One analyst, Kevin Krewell of Microprocessor Report believes that Apple is just trying to get attention from IBM.

"I believe this is a purely negotiating move by Apple to grab some attention and headlines and to point out that they're feeling underappreciated by IBM," said Krewell. Mercury News explains:

Apple has reportedly been frustrated with IBM's inability to manufacture its PowerPC processors quickly enough. And Apple has so far been unable to build a laptop that can successfully tap IBM's G5 Power PC processor, which runs hot and uses a lot of power.

IBM has also been quiet about its long-term plans for personal computer chips, and analysts said Apple may be concerned about how committed the company is to the product.


"There are so many issues with Apple moving to Intel's chip architecture," said Krewell. "First, they have to change all the software. ... And Apple would just become one of many Intel customers."

Last time Apple made a dramatic processor switch, the company lost half of its customers. It switched to the PowerPC from the Motorola 68000 in the early 90s.




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