Apple Prepares to Sell Macs With Its Own Chips in 2021


Apple Inc. (AAPL) is preparing to develop its own processors for Mac computers to be rolled out as early as next year, according to a Bloomberg report.

Until now, Apple had been using Intel Corp.’s (INTC) processors. Apple is said to be working on three different processors that are based on the A14 chip that will power the next iPhone. The first of these new Apple-made chips is expected to be much faster than that of the iPhone’s and will arrive in a new computer next year, according to the report. In taking this step, Apple is likely to be slowly moving towards ditching its dependence on Intel chips altogether, the report suggested.

Apple’s partner for iPhone and iPad processors, Taiwan Semiconductor Manufacturing Co. (TSMC), will develop the new Mac chips. The components will be based on a 5-nanometer production technique, the same size Apple will use in the next iPhones and iPad Pros.

All investors’ focus is on Apple releasing its earnings on Thursday. Five-star analyst Kathryn Huberty at Morgan Stanley believes that based on recent data the midpoint of the company’s revenue range will likely beat her $46.7 billion forecast. Huberty expects Apple this week to disclose its capital return plans and other plans to raise its buyback program by at least $75 billion and ramp up its dividend by a mid-to-high single digit percentage. Morgan Stanley has a Buy rating on the stock with a $298 price target.

Overall, Wall Street analysts have a Moderate Buy consensus rating on Apple stock based on 27 Buys, 6 Holds and 2 Sells. The $310.23 average price target indicates 9.6% upside potential for the shares in the coming 12 months. (See Apple stock analysis on TipRanks).

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