Apple is looking to replace processors made by Intel with its own, custom-built chips, according to a new Bloomberg report. The company could switch to its own chips as early as 2020. Intel shares, which were already in negative territory over trade war fears Monday, were down close to 9 percent following the news.
Intel has been supplying processors to Apple ever since the company switched from a previous processor architecture to the company’s chips in 2006. The company is currently responsible for as much as 5 percent of Intel’s revenue, according to Bloomberg.
As part of the transition, Apple is likely going to introduce major changes to its operating system that would take advantage of the capabilities of its new chip sets. Previous reports pointed to plans to run iOS apps made for iPhones and iPads on Macs. This type of interoperability could get introduced as early as this year, according to Bloomberg.
Using its own chips could help Apple not only to align Macs closer with its mobile products, but also give the devices longer battery life. The company sold some 260,000 million mobile devices in its fiscal 2017, but only around 19 million Macs. Still, Mac hardware is an important money-maker for the company, bringing in more than 11 percent of its revenue that year.