Intel Corporation (INTC) Stock Takes Big Hit on Apple Chip News

Intel Corporation (NASDAQ:INTC) will no longer be powering all Macs as of 2020.

Intel Corporation
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The company’s shares took a hit as Apple Inc. (NASDAQ:AAPL) announced that it will be ridding itself of Intel chips for the design of its Macs as soon as 2020. In its stead, the tech giant will be designing its own chips to power Macs.

About 5% of the chipmaker’s annual revenue comes from Apple as Intel processors are used in all Macs created since 2005, while its modem chips are used in some iPhones. The last time Tim Cook’s company made such a transition in its computers’ processors was in that year when Steve Jobs gave the green light and the move was completed by the end of 2006.

Apple said that the transition will be a multi-step one, although Intel chips will most likely remain in some of the company’s top-end machines such as the iMac Pro and the upcoming Mac Pro revision. However, it is only a matter of time before Apple produces its own in-house chips that can meet the demands of professional Mac users.

The tech giant has experienced years of great success with its ARM-based processors that have been built into its iOS devices, the Apple Watch and the Apple TV. These mobile devices are more powerful than some of the old Macs.

This move will help Apple have more flexibility when unveiling its new products, while also improving security.

INTC stock fell 6.1% on Monday, before recovering slightly (0.2%) after the bell. AAPL shares fell 0.7% and dropped a further 0.2% after hours.

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