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Intel transition to help Apple in long term

updated 10:55 am EDT, Tue June 7, 2005

Long term benefits

Apple's transition to Intel chips will allow it to provide improved performance, better heat and power management, and lower price points, especially for mobile platforms, according to Banc of America Securities. The research firm, who rates Apple at a 'Buy' with a $44 price target, said that the announcement was a " for the next five years: "Further, we have always believed that Apple's value has rested with its software development (for its OS and applications), rather than the hardware," according to the Forbes report. In a research note, research firm Piper Jaffray said that despite the possibility of pushback from its current developer community, Apple has three major benefits from Intel transition: better consistency in processor supply, improved CPU pricing, and a larger potential developer community.

"Over time, we believe an Intel-based Mac would lead to a larger developer community, potentially providing for greater breadth of applications," according to Piper Jaffray Senior Research Analyst Gene Munster.

Munster continued to focus on Apple's lead in the digital music industry and said that the company could use that foundation to continue to grow its Mac business using the "halo effect."

"Apple's domination in digital music is a critical piece to the story, but we do not believe that iPod is the only potential growth avenue. Indirectly, we expect iPod to continue to be a foundation for growth in other parts of Apple's business, and we expect that by the end of CY05 more than 35m iPods will have shipped, providing Apple with a greater scope of awareness for various products ("halo effect").

Piper believes the iPod will continue to drive sales for the rest of the fiscal 2005 year as well as 2006 based on the assumption that iPod owners who are PC owners will increasingly migrate to the Mac.

by MacNN Staff




  1. cgc

    Joined: Dec 1969


    Think Different?

    I think a huge part of the coolness of being Mac and PowerPC was the fact that we were a minority and anti-establishment. It's like getting a tatoo or a piercing simply because it's different. Now we're just a little less different and that bothers me. Intel is a great move but now what will differentiate us? OS X is phenomenal, is that enough to maintain the Mac/Apple "cool factor" and lust?

  1. Ciriaco

    Joined: Dec 1969



    If OS X would run on Wintel machines, it would be cool to have a Mac simply because it is more stylish. Or why else would anyone buy an iPod shuffle?

  1. R65

    Joined: Dec 1969



    "net positive for the company" Is it a net positive for the consumer?

  1. macbarry

    Joined: Dec 1969


    no brainer

    Of course it's a positive for the consumer. How can having the fastest chips available and the best operating system be a negative?? Apple will continue to build quality machines just as in the past and continue to update the OS. Don't be afraid of Intel just because Bill Gates makes a worthless OS...

    It's all about the Apple OS. I use the Mac OS because it's vastly superior to either Linux or Windows - not just because it's "cool". As a long time Mac user I am very happy to know that Apple will no longer have to beg and plead with it's chip suppliers to update their processors. RISC chips may be clearly more "elegant" than x86 but only if you can get them... I'm with Steve - s**** IBM and their little dog Motorola too.

  1. testudo

    Joined: Dec 1969


    Re: no brainer

    Yeah, but this makes the assumption that OS X will be as good and smooth on intel chips as it is with the PPC and Apple's hardware.

    Of course, it would be sweet if Apple could actually smooth out the OS for use current users, rather than have to deal with all the problems with this rushed-out-to-make-money-in-the-quarter build.

  1. Maguro

    Joined: Dec 1969


    Apple branded WinPC

    Not many people will realize this, but for the first time in history we have a possibility of Apple branded Windows machine without slow Windows emulation. I think if we purchase an Intel Mac, we will be able to easily install Windows XP/Longhorn on the machine and we will have a cool looking, Apple designed Wintel PC. Some people will want to buy them just to run Windows and it's good for Apple for their hardware sales.

  1. PHoynak

    Joined: Dec 1969



    Hopefully if the next generation PPC chips are truly faster Apple can go back. They don't want to be stuck to one supplier of chips again.

  1. MPMoriarty

    Joined: Dec 1969


    Re: Testudo

    You forget that Apple has been developing this version for since 10.0 or 10.1 making sure that both code bases were stable enough on either platform. The only problems I see with the Intel version of OS X Tiger is the same bugs that are affecting the current build of PPC OS X Tiger.

  1. Rainy Day

    Joined: Dec 1969


    No Windoze booting

    I'm not sure a MacIntel would be able to boot Windoze. It's unlikely to have a BIOS or other Windoze specific support. Instead, look for OpenFirmware and Mac specific features.

    No one really wants to boot Windoze on a MacIntel anyhow. What folks really want is the ability to run Windoze apps. With something like Wine, Windoze apps should be able to run under MacOS X directly.

  1. iomatic

    Joined: Dec 1969



    I was skeptical, but upon further analysis, check it:

    Intel chips are better and more widespread, easier to develop for by sheer mass.

    Apple has the best OS bar none, no Windows version can possibly compete.

    Yes, it's a good thing .

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