For many years, Intel has been the market leader in processors all around the globe. For as long as one can remember, Intel's processors have been used in mobile phones, laptops, cars, robots, and many different machines. But the status quo seems to be changing now. Other market entrants such as Apple are threatening the leading position of Intel with its self-designed M2 Mac processors. This is a groundbreaking development for tech-sector stakeholders as the diversity of options brings in quality and reduces the cost. The shipments of M2 processors could start as early as July 2021 and used in Macbooks, which are to be sold in the third and fourth quarter of this year.
The chip is unique in many respects, such as its capacity to integrate various units such as central processing units, graphic processing units and artificial intelligence accelerators on just one chip, i.e. M2. Just like M1 has been used in other Apple devices, M2 is also expected to be used in other devices for better and enhanced performance.
The new chipset is produced by Apple's key supplier names Taiwan Semiconductor Manufacturing Co., which also happens to be the world's largest contract chipmaker. The chipmaker uses the latest technology for production, called 5-Nanometer Plus, also referred to as N5P. The production of advanced M2 chips could take a long time of three or more months, primarily because of the global chip crunch.
The latest spring event of Apple announced many updates, one of which were products using an M1 processor that gave an 85pc better performance compared to Apple devices using an Intel processor. In comparison, the visual performance has been 200pc better. Although at the time M1 was introduced, apple announced that it would take at least two years to integrate all Apple devices with M1 but the latest M2 mass production has been much quicker than expected. This deals a massive blow to Intel which will lose a gigantic sale point.
Due to Covid-19, Apple's Mac has seen an increase of 23pc in sales, with 23.1 million Mac units sold in 2020 alone. This is a significant opportunity for Apple which trails behind Lenovo, HP and Dell, to upgrade its position in the market and refine its selling proposition. Joey Yen, an analyst in the field, has been very vocal about Apple's strategy and has stated that Apple is very much determined to use its chips in its computers and replace intel.
This move will further differentiate Apple products from its competitors. This latest update can have consequences for other companies such as Dell, HP and Lenovo, who might think of shifting to Qualcomm or MediaTek to make their products different and better. All of Apple's competitors are using Intel's processors at the moment.