After ten years working with Apple, there are rumours that Jobs’ Mob is considering ditching Chipzilla and will start making its own Mac chips. After all Apple already creates its own chips for the iPhone and iPad based on designs from ARM and then has manufacturers like Samsung build them.
The Tame Apple Press thinks that eventually Apple’s ARM chips will be so powerful, Apple won’t need Intel anymore.
But in an interview with Business Insider, Intel’s CFO Stacy Smith brushed off those concerns and claimed that Intel is so far ahead of the competition when it comes to PC processors that Apple – and just about every other PC maker – has no choice but to use Intel chips.
Smith said that Apple was a “great partner of ours” and like Intel they like bringing really cool stuff to the market.
Intel’s leadership over the rest of the industry is extending. We’re not delayed relative to the industry. Intel is ahead of the industry, Smith said.
For Jobs Mob that means that if it abandons Intel it will have to lose lots of performance in its new Macs.
Intel thinks that Apple customers would have to take such a big step off performance if Jobs’ Mob abandoned Intel it is not worth it.
Of course, Smith fails to understand that if Apple decided to walk away from Intel, it would simply tell its customers its solution was better and the Tame Apple Press would agree with it. Apple has never been about performance, it has always been about the design and the Apple logo.
Some analysts believe that not only has the market reached maturity, but it’s hard to persuade people to upgrade. Others think that tablets are being squeezed on the one hand by larger screen size smartphones and others by low cost notebook PCs.
Apple set up the plant with GT Advanced Technologies in Mesa in 2013 to manufacture scratch-resistant sapphire screens for Apple’s shiny toys.
However, GT Advanced filed for Chapter 11 bankruptcy in October and closed the plant, after what appears to be a case of Apple shafting its partner by leaving sapphire glass was left out of Apple’s newest iPhones.
Since Apple owned the plant, it wants to turn it into something more useful. The $2 billion investment will stretch over 10 years with a 30 year commitment from Apple to keep the facility running.
But Apple does not really need another data centre. We have written before that it is hugely over capacity now. Jobs’ Mob said that the facility will be a data centre as well as a command centre for managing Apple’s other data centres and networks, which handle traffic from services like iTunes, iCloud and Siri.
It claims it will create 600 engineering and construction jobs at the data centre and the whole lot will be powered by solar energy.
As it wound down its Sapphire production in October, GT Advanced said it was laying off about 650 employees at the plant.
Phrases like “smashed Wall Street expectations.” “record sales” and “largest profit in corporate history” were liberally used.
The company sold 74.5 million iPhones in its fiscal first quarter ended December 27, while many analysts had expected fewer than 70 million. Revenues rose to $74.6 billion from $57.6 billion a year earlier.
S&P analyst Howard Silverblatt claimed that Apple’s $18 billion profit was the biggest ever reported by a public company, worldwide and Apple’s cash pile is now $178 billion, enough to buy IBM.
The Tame Apple Press were even more excited when Apple Chief Executive Officer Tim Cook said the Cupertino, California-based company would release the Apple Watch, in April, nearly two years behind the market.
The press rushed to find analysts who said that Apple was jolly brilliant while Microsoft and IBM had disappointing results.
However, as you might expect there was an element of selective reporting. For example, analysts expected Apple to sell more iPhones in China than the US – it did not. Although sales in China were “up 70 percent on last year” sales behind the bamboo curtain were not that great last year. The Tame Apple Press praised the company’s partnership with China Mobile for being responsible for the increase in sales, ignoring the fact they predicted earlier that China sales would be blistering.
Unable to blame Apple, Reuters blamed the Chinese economic slow down for the poor Chinese outing and instead claimed that Apple was well positioned to do better next year.
Apple reported net profit of $18.02 billion compared with $13.07 billion a year earlier. Analysts had expected revenue of $67.69 billion.
Cooler heads pointed out that Apple would face problems next year because of the stronger dollar and predicted that things would not be as good. Apple predicted revenue of $52 billion to $55 billion in its fiscal second quarter, compared with Wall Street’s average target of $53.79 billion.
Meanwhile Cook was touting new shiny things to encourage more positive talk about the outfit. Not only did he promise to release the iWatch which is now so out of date the specs were originally designed on the great pyramid, he talked about Apple’s new mobile payment service, Apple Pay which is, so far, to make much headway.
The largest profit in corporate history was Fannie Mae which made $84 billion in 2013.