{"id":172563,"date":"2020-06-23T09:30:11","date_gmt":"2020-06-23T13:30:11","guid":{"rendered":"https:\/\/www.countingpips.com\/?p=172563"},"modified":"2020-06-23T07:17:12","modified_gmt":"2020-06-23T11:17:12","slug":"apple-chips-to-overcome-intel-silicon-valley","status":"publish","type":"post","link":"https:\/\/www.investmacro.com\/forex\/2020\/06\/apple-chips-to-overcome-intel-silicon-valley\/","title":{"rendered":"Apple chips to overcome Intel silicon valley"},"content":{"rendered":"
June 23, 2020<\/div>
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By Han Tan, Market Analyst, ForexTime<\/a><\/strong><\/p>\n

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After years of rumours, it\u2019s now official: Apple is breaking up with Intel.<\/p>\n

At its Worldwide Developers Conference 2020, which kicked off on Monday, Apple announced plans to sell Mac computers using its own processors beginning this year, moving away from Intel\u2019s chips. The news sent Apple to a new all-time high with a year-to-date climb that has now exceeded 22 percent.<\/p>\n

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Intel\u2019s stock still managed to track broader gains in US stock markets, although it remains some 13 percent below its year-to-date high.<\/p>\n

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The breakup of the 15-year relationship however carries more symbolic value than financial pain.<\/p>\n

In its 2019 financial year, Mac computers accounted for less than 10 percent of Apple\u2019s total revenue. Over the prior three financial years (FY 2016-2018), fewer than 20 million MAC computers were sold per FY, which is less than half of the total number of iPads sold. iPhones remain the company\u2019s primary hardware product, making up about 77 percent of total units sold, while accounting for more than half of total revenue according to Bloomberg data. Meanwhile, it\u2019s estimated that the Mac line of computers accounts for less than five percent of Intel\u2019s annual revenue.<\/p>\n

While this latest move appears to be chipping away at Intel\u2019s position as the world\u2019s largest chipmaker, Apple\u2019s own position is also being challenged.<\/p>\n

The Cupertino-based company is facing a backlash from third-party developers who will play a crucial role in ensuring that apps can still function well on the new Macs that are set to be powered by Apple\u2019s own processors by year-end. Apple however appears to have extended an olive branch to the developer community on Monday by allowing them to challenge App store policies.<\/p>\n

At the same time, US and European regulators are scrutinising Apple\u2019s policies over its App Store, which contributed about 18 percent of Apple\u2019s total revenue in the 2019 fiscal year, a figure which exceeded US$ 46 billion. The iPhone maker is also still contending with the ill effects of the coronavirus pandemic. Just last week, Apple announced that it will reclose 11 stores in Florida, Arizona, North Carolina, and South Carolina amid a resurgence in Covid-19 cases. While the immediate impact appears minor for the time being, a larger wave of US lockdowns could erode Apple\u2019s sales, considering its reliance on hardware sales.<\/p>\n

Even when faced against such headwinds, markets are still holding up Apple as the world\u2019s most valuable company, with a market cap of US$1.555 trillion. Given the grip it has over its software and hardware ecosystems, Apple\u2019s shares are expected to ride out potential valleys to come and climb onto loftier peaks.<\/p>\n

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Disclaimer: <\/strong>The content in this article comprises personal opinions and should not be construed as containing personal and\/or other investment advice and\/or an offer of and\/or solicitation for any transactions in financial instruments and\/or a guarantee and\/or prediction of future performance. ForexTime (FXTM), its affiliates, agents, directors, officers or employees do not guarantee the accuracy, validity, timeliness or completeness, of any information or data made available and assume no liability as to any loss arising from any investment based on the same.<\/em><\/p>\n<\/div>\n

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\"Forex-Time-Logo\"Article by ForexTime<\/a><\/span><\/strong><\/p>\n

ForexTime Ltd (FXTM)<\/strong> is an award winning international online forex broker regulated by CySEC 185\/12 www.forextime.com<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"

By Han Tan, Market Analyst, ForexTime After years of rumours, it\u2019s now official: Apple is breaking up with Intel. At its Worldwide Developers Conference 2020, which kicked off on Monday, Apple announced plans to sell Mac computers using its own processors beginning this year, moving away from Intel\u2019s chips. The news sent Apple to a […]<\/p>\n","protected":false},"author":3,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[],"tags":[],"class_list":["post-172563","post","type-post","status-publish","format-standard","hentry","no-post-thumbnail"],"_links":{"self":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts\/172563","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/comments?post=172563"}],"version-history":[{"count":2,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts\/172563\/revisions"}],"predecessor-version":[{"id":172574,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts\/172563\/revisions\/172574"}],"wp:attachment":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/media?parent=172563"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/categories?post=172563"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/tags?post=172563"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}