In September, the San Diego-based chip manufacturer Qualcomm tried to acquire Intel, the popular desktop-grade chip manufacturer. However, we haven’t heard of a potential follow-up from the latter. Now, new rumors suggest that Cupertino-based iPhone-maker, Apple, is eyeing Intel’s chip business. While Samsung is also said to be in line, Apple’s bid could create a huge difference due to the company’s significance in the US and global markets.
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Intel Faces Immense Competition From AMD And Apple
Apple already owns Intel’s modem division, an acquisition that took place four years ago. However, according to the YouTube channel “Moore’s Law is Dead,” the company is now looking for a complete takeover of Intel’s operations. Due to immense competition from rivals like AMD and Apple (who replaced Intel’s processors in its MacBook with its M series), the company is struggling to retain its market share.
Once the market leader, Intel has faced more than a couple of challenges, leading to the company’s stock falling two-thirds since the beginning of the year. Issues like manufacturing lag, delayed product launches, internal challenges, and shifting marketing dynamics (toward the inclusion of AI and highly-efficient chips have eroded the company’s market share, tarnishing its reputation as a leader in the space.
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Here’s How Apple Could Benefit From The Acquisition
On the other hand, acquiring Intel could open plenty of opportunities for Apple. First, Intel’s design and development team could directly contribute to Apple’s lineup of in-house chips for the iPhone and MacBook. Further, this could also reduce Apple’s reliance on TSMC to manufacture its chips, especially after the recent case of TSMC’s chips ending up on Huawei’s smartphones through a proxy company.
Moreover, acquiring Intel makes more sense for Apple, especially since it will increase the company’s market position and decrease reliance on contract manufacturers. However, the source of the information, the YouTube channel, has repeatedly mentioned that these are rumors, and neither of the companies has confirmed the information. Hence, readers should take this information with a pinch of salt.
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