Really? Apple should acquire AMD?
Although he knows “it sounds way too radical to be taken seriously,” Gundeep Hora at CoolTechZone.com nonetheless thinks Apple should make a strategic acquisition of processor-maker AMD.
AMD is the world’s second-largest supplier of x86 based processors, after Intel, Apple’s current supplier.
However, Apple could drop Intel altogether and adopt AMD for its Macintosh PCs. Sure, the transition is going to take sometime, and it would probably make Apple announce a brand new line of PCs. However, it will be well worth it.
Unfortunately, Hora neglects to explain why it would help Apple much. Unless you can make sense of this:
In the meantime, Apple could have AMD deal with HP, Dell and a slew of its current customers without a direct conflict of interest. Hey, it’s better than HP buying AMD and Dell having to go to HP for getting AMD chips, or vice versa. AMD acquisition by Apple makes perfect sense in as much of a non-threatening way as possible to Dell, HP and others.
Um, yeah, perfect sense. Because Apple is always concerned about being non-threatening to Dell, HP and other computer manufacturers, right?
Another benefit that Apple will reap out of this (other than adding another revenue stream) …
Wait a minute… Apple would spend money to buy AMD, which just last quarter lost $611M… And where’s the new revenue stream, exactly?
… is to have complete control over its hardware from a cost standpoint. If it can convert Macs to AMD and ATI chips, all the key components are being developed in-house. Talk about increasing margins. Apple could either squeeze out higher margins-per-PC to lower the cost-per-Mac to allow for affordable switchover from Windows or improve its bottom line directly. Regardless of which way you cut it, Apple is going to be a winner in all of this.
Unless the acquired AMD is unable to keep up with Intel and Apple once again has slower computers on the market than its Windows-based competitors.
Of course, maybe I shouldn’t be surprised by this article, seeing how it’s from the same author who just last week wrote that the price of the iPhone would NEVER drop because Apple never dropped the price of the iPod. (Hint: $399 to $249 constitutes a drop!)
Lime on May 3rd, 2007 at 6:48 am
Sounds more like some AMD fanboy is worried they’re going under
Ricki on May 3rd, 2007 at 7:27 am
Well mind experiments are always funny.
But seriously if Apple were to go out an purchase a company for the benefit of having components produced in-house, then I would recommend them buying a company that makes a living selling flash based RAM. That would be an investment, CPU’s are overrated…especially AMD CPU’s. Last i checked Intel is actually not that expencive, not in a £1000 notebook anyways.
There are tons of speculations on why Apple choose Intel “back in the day” but they still get the most mileage per watt so why do the whole “spend billions on transporting OS X to another chip” again.
Here is a strategy for Apple, get all the strange flaws out of the notebook line, then they will have a foundation to build on for years. Like the iBook and Powerbook, those things are sturdy as ****. People buy notebooks, not CPU’s IMHO.
I dont think the CPU is such a big piece in the notebook puzzle, there are thousand of other components that have influence on the finished system and they are all produced by 3. party vendors.
Dave on May 3rd, 2007 at 8:48 am
This guy doesn’t have a great track record of insightful articles about Apple. The Macalope took apart one of his articles here http://www.macalope.com/2007/04/03/arrogance/ in which Hora complains about Apple not showing up to some trade show most people have never heard of. (John Gruber points out that iPhone actually *was* shown in the Keynote) http://daringfireball.net/linked/2007/april#tue-03-arrogance
Michael on May 3rd, 2007 at 11:03 am
“Unless the acquired AMD is unable to keep up with Intel and Apple once again has slower computers on the market than its Windows-based competitors.”
Wait, we’re admitting that Macs were slower than PCs now? What happened to the architecture argument?
nfoo on May 3rd, 2007 at 12:55 pm
Why not go all the way and after switching to AMD drop OSX and move to Linux. This is the bs direction these ideas come from.
Apple had a good reason to switch to Intel: very fast Chips with low energy consumtion, faster than the AMD and look at the MacPro: eight cores now. It’s a great platform and will even improve in the very near future.
It is the best Platform right now. And that’s why Intel is more successful than AMD. No reason hating a company for the success they have by making a great product.
AMD fanboys: go buy a Dell with Linux and have fun starring at you boot up terminal text output … he he …
mdmunoz on May 3rd, 2007 at 3:34 pm
I am all in favor of Apple making their hardware in-house. I’d actually be pleasantly surprised if they bought AMD.
g on May 3rd, 2007 at 6:25 pm
I don’t know how this could help Apple right now. OK, AMD makes better processors (except for the last few months where CoreDuo is found better in most benchmarks). So what ? Apple finally understands that, if they want to be ultra-profitable ala Dull or Micro$oft, they have to act like them. Having the better product doesn’t really matter as long as good marketing will sell millions. Strong guts and shareholders greediness were required in order to drop a superior platform (PowerPC) for the unspectacular, already peaked, but benchmark-friendly x86 platform in the first place, it’s highly unlikely Apple would switch from Intel now. Since by going Intel only also helps Apple hurting HP’s and Dell’s businesses.
But, if AMD comes with better CPU family, chicken-hearted companies such as HP and Dell embrace it and the state acknowledges Intel’s monopolistic practices, things could change.
Ed on May 4th, 2007 at 8:18 pm
To me this is more like a AMD Vs Intel questions.
AMD dont make better processors. Power Consumption wise and small form factor wise Intel is a lot better in those area where apple are interested.
AMD dont have the capacity. Where with Intel apple can go and order how much they want and Intel would have NO problem keep up with it.
Engineering Resources. Apple have limited resources and therefore will need as much help as they need. Intel has provided engineer to help from tuning Objective-C Compiler to OSX code base.
Kendall Tawes on May 15th, 2007 at 12:14 pm
I don’t know if that would be too good. Intel is making some good stuff right now. I’m just worried Apple would be getting it self into another PowerPC conundrum and if it was an owner there would be even more trouble if the time comes to switch again. I think Apple will stay away just so it can keep it’s options open so if Intel starts screwing up they can quickly jump ship before worst come to worst.