Apple Will Say Goodbye to Intel Chips in 2021: Bloomberg

After 14 years using Intel's processors, Apple plans to say goodbye to them in 2021 and is already developing its own devices, Bloomberg reported exclusively.

The company is developing A14-based processors, which are currently used in iPhones and iPads, to replace Intel’s supplies next year. This move is not new since in 2007, Apple began using its own chips on Macs. The modem chips, which connect the devices with wireless data networks, have always been supplied by companies outside of Apple. Mac's business at Apple generated US$7.16 billion in revenue in 4Q19.

Apple's decision is due, in part, to the fact that in July 2019 the bitten apple company bought part of Intel's business for 1 billion. Earlier that year, Apple and Qualcomm agreed to dismiss all litigation between the two companies over patent licensing practices. The settlement included at least a US$4.5 billion payment from Apple to Qualcomm. The companies also reached a six-year license agreement and a multiyear supply agreement.

Poor Demand

Apple provider LG Display increased its losses by US$294.70 million in 1Q20 and said there will be a sharp contraction in demand for smartphones due to the crisis unleashed by COVID-19. “We expect volatility in demand to increase down the road,” the company said in a statement.

The South Korean company also reported on the delay in the production of OLED screens until 2Q20, since it has not been able to send technical personnel to its factory in China due to travel restrictions.