Despite President Donald Trump’s continues efforts to ensure the United States self reliance and place the country at the vanguard of innovation, Apple has announced that it will be procuring it’s new processor chips from a Chinese manufacturer firm located in Taiwan. Apple’s commitment to China will be a huge blow to the US base Intel Corporation which has remained as the world’s leader in chip manufacturing for nearly the past three decades . Apple’s plans to have the same processor across all it’s devices (iPhone, iPad, Mac, etc.) so as to have greater synergy between each of there products.
Apple’s announcements include a target to have all it’s devices with the same processor by year 2020. Certainly a major advantage to the lucky chip manufacturer given Apple’s popularity in the human interface line of technological products. While the company claims to be installing it’s own processors, the reality is that with the current Trump tax breaks and the amount of cash in hand held off-shores, there’s little to no excuses of why Apple doesn’t negotiate a favorable deal with Intel Corporation, or decides to build a manufacturing facility in US if it’s truly committed in manufacturing it’s own chips.
While the move by Apple will not initially have a significant impact on Intel’s earnings, it will give immense leverage to the Taiwanese company to significant encroach on Intel’s market share and will give them the blueprints to eventually supersede one of America’s last standing icons of modern technology.
COMMENTS