Apple using Intel processors? I´d like to see it.

Discussions between Apple and Intel have been reported and all the sudden everybody talks about Apple again (yes, including us – it works). This is a recurring event, every once in a while, the rumor spread around that Apple will go away from PowerPC and use the Intel X86 architecture, then… nothing.

It is technically possible. Apple has Mac OS X running (or at least compiling) in Apple’s labs at all times, as they have to shield themselves against the possibility that the PowerPC architecture might not be there forever.

But switching to another rmicroprocessor architecture is not a walk in the park. Applications are compatible at the binary level with Power PC and Apple would need to use an emulation system to be backwards compatible. They could also skip the compatibility, but this would be really a dangerous strategy. Such a change would also involve the redesign of the motherboards and the re-write of lots of (PowerPC) code that controls all the basic computer and peripherals functions. It’s quite an undertaking.

However, all of this is doable (given enough time). The question is: what would make it worthwhile for Apple to do it? The current assumption is: to use a cheaper CPU. It could either give Apple better margins, or allow them to enter lower-margins markets (cheap PCs). I don’t think that the better margains are worth the effort. Quite frankly, I’m not sure about the price difference that Apple would get by buying X86 instead of PowerPC, but I can’t imagine that it would be so significant. To Intel, Apple has the size of a Major PC Manufacturer and that will not justify “out of this world” prices.

Would Apple want to compete with a Dell in the low-price PC market? They certainly can’t. When it comes to low prices and cost-cutting, Dell is just a killing machine that Apple can’t compete with. Ask Gateway/E-Machines and the other PC Vendors.

If anything, Apple would enter the volume PC market (cheap) to get market share at the expense of high margins. Anyways, I don’t see a switch to X86 processors in the short term, even if this generates a lot of noise right now. I don’t even think that these talks would get Apple any discounts on their current microprocessors purchases.