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102 All Apple
Computers Will Be Using Intel Chips By 2007, says Steve
Jobs
• •
24th Week,
2005
/ SAN FRANCISCO -- "This
week's big announcement is that Apple Computer Inc. is
following the money," says Victor Caballero of
vratv.com.
Apple will commence using Intel Corp. chips in all of its
computers, immediately.
• • It was a dream come
true, say most people in the know. "We shall see a true
Mac/PC, EU (European Union) approved combo package -- all
rolled up into one BIG MAC-PC - with QT audio/video
streaming. Apple is getting ready for world-wide Podcasting,
or as we call
it around VRAtv, "Handicast," says Caballero, "named after
the NBS 1902 wireless
telephone."
• • So , , ,
this week's TVI's 242005, Person of the Week, is Steve Jobs,
who just announced to software engineers at the company's
annual developer conference that Intel microprocessors would
power Macintosh computers beginning next year, with Intel
inside all Apple computers by
2007.
• • The move ends a long and sometimes
stormy relationship between Apple and IBM Corp., which
builds the Mac's current PowerPC chips, and Motorola Inc.,
which makes chips for Apple laptops. Intel supplies most of
the chips that power PCs running the Windows operating
system of Apple archrival Microsoft Corp. So closely aligned
are Microsoft and Intel that they often are referred to as
Wintel.
• • So to some of Apple's Macolytes, the
new alliance portended something sinister for the Cupertino,
Calif.-based company that has leveraged the success of its
iPods to boost sales of its stylish but expensive
PCs.
• • "Where does this lead us?" Jobs asked
from the stage. Before Jobs could answer himself, someone in
the audience cracked, "Down the road to
hell."
• • Despite sentiments like that, computer
industry analysts and many Mac users discounted the
long-term effects of the change, saying Apple has built its
reputation on software and design rather than the raw
computing power of its machines. By switching to Intel, they
said, Apple may be able to cut prices on its computers and
compete more directly against low-cost
sellers.
• • In wooing Apple, Santa Clara,
Calif.-based Intel can claim the prestige of supplying one
of Silicon Valley's most finicky customers, but the
financial benefits will be relatively small. Intel is the
world's largest chip maker, and Apple is one of the smallest
major PC makers, with just under 4% of the
market.
• • For its part, Armonk, N.Y.-based IBM
has already focused its energies on building chips for the
video game industry. Its chip technology will power
next-generation game consoles from all three of the major
game companies: Microsoft, Sony Corp. and Nintendo
Co.
• • On a generally flat day on the
financial markets, Apple shares fell 32 cents to $37.92,
Intel dropped 16 cents to $27.17 and IBM lost 79 cents to
$75.
• • Jobs described the switch to Intel as
the third major transition for Mac computers since the
company was formed in 1976. The other two were the initial
switch to PowerPC chips between 1994 and 1996 and the move
to a new operating system, OS X, between 2001 and
2003.
• • The change was fueled by a desire "to
make the best computers going forward," Jobs said, noting
that he promised high-performance desktop and laptop models
two years ago that never materialized. "We envision amazing
products we want to build for you. But we don't know how to
do it on the future of PowerPC."
• • He did not cite IBM by name, but Apple
reportedly had been frustrated by IBM's inability to develop
a chip that could process immense amounts of data without
overheating. Intel, by contrast, touts its cool-running
chips that consume less power.
• • But just because the chips are the
same, differences will still exist between Macs and other
PCs. Most noticeably, Apple will continue to promote the
virtues of its operating system, which is widely viewed as
more stable and secure than Windows even if it runs a
fraction of the programs.
• • "This is not a clone play," said
Jupiter Research consultant Michael Gartenberg. "OS X won't
run on a Dell or HP machine. Will someone come up with a
hack to do so? Absolutely. But the OS X installer will not
allow it to work on a non-Apple machine that's not from
Cupertino. But I can imagine Microsoft creating an
[application] where you push a button and get OS X,
and push a button and get
Windows."
• • Change does not come without risk. When
Apple switched to PowerPC chips, its market share fell to
around 5% from 8% to 10%, said Insight 64 consultant Nathan
Brookwood. After the computer maker introduced the OS 9
operating system, its share fell to less than 3%. "Going to
Intel's … architecture, they could end up in the 1%
range," he said.
• • Paul Hershenson, president of
Pasadena-based software developer Art & Logic said that
although the change might seem strange, he predicted that
few would even remember it in a few
years.
• • "Apple has always been the alternative
company," he said. "They're the ones who don't feel
corporate. They're the nonconformist computer company.
That's always been the vibe…. So moving over to Intel
processors just seems like a conformist thing to
do.
• • "I suspect that most people will react
the way we did. At first, they'll say, 'That's freaky!' But
we have a lot of faith in Apple. People who have strong
reactions, I think they'll settle down pretty quickly."
///
ByLines:
Editors Note
More Articles
• Converging
News 242005 / TeleCom Buy Outs and Asset Seizure
Boom
Respectfully
Submitted
Josie
Cory
Publisher/Editor
TVI Magazine
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tviNews.net, YES90, Your Easy Searh, Associated Press,
Reuters, BBC, LA Times, NY Times, VRA's D-Diaries, Industry
Press Releases, They Said It and SmartSearch were used in
compiling and ascertaining this Yes90 news report.
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