Analyst: Apple can save $500 million a year replacing Intel chips with its own
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The "insourcing of chips could benefit Apple by not being dependent on Intel's processor cycles, by lowering the Mac costed bill-of-materials by ~$40-50, and by potentially streamlining and reducing R&D spend," analyst Wamsi Mohan wrote in a note to clients.
He added that Apple can improve its product development times if it uses its own chips.
"The benefit to Apple would be two-fold: 1) aggregating development across iOS and MacOS can help lower the overall cost of R&D by potentially combining development teams and potentially reducing time to market for new products and Apps, and, 2) internally developing the processor can help save some cost vs. purchasing the processors from Intel,” Mohan adds.