Intel Inside For Apple?

iomud writes "Bear Stearns analyst Andrew Neff predicts that there's a better than 80 percent chance Apple will make the jump to Intel in two to four years. As the relationship with Motorola seems to be weaning the question may be what chip would you like to see in next-generation Macs and why?" It seems important to note that Bear Stearns owns shares of Intel and Dell, and has a banking relationship with Dell and HP. Oh, and even if it didn't, that I can't see any reason why anyone should care what Andrew Neff says. But that doesn't mean it can't be fun to talk about!

Comments

Re:What's the point?

[BitGeek]

Additionally, the size of the Mac user base has steadily eroded

I don't think you can say this. I'm aware of no information that expresses the size of the mac user base.

you often see the "%5 of the market" figure, but that is actually %5 of NEW PC SALES, (so it ignores the fact that People turn their PCs over every 18 moths, but macs are performance competitive a lot longer) oh, and these numbers also ignore most mac sales. So even saying "%5 of new sales" is a lie-- they count Dell, Ingram Micro and CompUSA. They ignore the Apple store, the Apple stores, and the hundreds or thousands of independent apple dealers around the world.

Put a better way, Apple has %5 of the Intel PC market- - because that's the market they count-- and of those people, %5 of the pcs they sell are actually apples!

The total addressable market-- that is, Macs out there in active use-- is much larger, probably %20.

Last time I had any reliable numbers, it was %30, but that was because they were the only company selling CDROM drives for computers and so you could look at the number of those sold and know how much market share apple had... so that would have been the early 90s.

I'm not saying I know what the TAM for Macs is, I'm just saying I've never seen any reliable figures, and the %5 one is clearly unreliable. ( But makes for good copy for those with "Apple is dying" stick who want to beat that dead horse.)

Re:"Performance Boost" a result of the MHz myth?

[Golias]

The tougher fact is this: The 2.5GHz P4 is significantly cheaper than the 1GHz G4. You can buy 1GHz G4's in top-of-the-line Macs. You can buy 2.5GHz P4's at Costco.

The ratio is, literally, "bang for the buck". At some point the bang for the buck for Intel will so outstrip the PowerPC that Apple simply won't have any choice but to make the jump. Thankfully, once Apple's got everyone on board on MacOS X, the procedure isn't too evil. NeXT did it once already.

P4's are cheaper to buy, yes. However, they consume more power and run hotter, which makes the G4 a vastly superior choice for laptops (even in bang for the buck comparisons).

As for the notion that the gap will widen and Apple will be forced to switch, keep in minds that in the desktop market the x86 archetecture has always had a ! for $ edge over any Motorolla/Apple system (with the exception of the original Apple ][, in which Woz chose a Moto knock-off over Intel chips because they were cheaper). I'm fairly sure that no Mac has ever given you more flops-per-dollar than whatever the prevailing Wintel box of the day was... Not so much because the chips are so much more expensive (although the do cost a little more), but because Apple's superior operating systems have let them sell their boxen with a much higher profit margin than companies like Compaq (RIP) and Packard Bell (Ditto), who had no way of really making their computer stand out from the budget systems from your local neighborhood screwdriver shop (or the no-name vendors who get all their sales from good scores on Pricewatch.com).

So yea, Apple could (in theory) save about $50 a system (their cost) by moving everything over to Intel. But they would also end up increasing the odds that somebody could reverse-engineer their ROMs (as Compaq once did to IBM), and suddenly all those "Pricewatch Special" shitbox PC's and PC Mo-Bo kits (and I say that as a big fan of "Pricewatch Special" shitbox kits) will be able to run OS X after a simple chip-mod, and Apple would die a horrible death shortly thereafter, making version 10.5 (or whatever) the last Mac OS ever.

Nobody can make enough money to sustain a company by writing operating systems for commodity PC's sold by other vendors. Microsoft doesn't; they make the big bucks selling their Office Suite (which is MS's Real Monopoly if you ask me). Red Hat also doesn't; they sell and support an OS that they did not have to write or buy, and is being constantly dev'd by people they don't pay. Remember when we were told in the pages of "In the Beggining Was the Command Line" that Be would be the wave of the future? Be is gone. Remember when they tried to revive the Amiga OS? Remember when Gateway bought it to port to x86? Remember when the chumps they sold it to were going to release something?

Apple learned the hard way during their 1-year attempt at "clone" licensing that the only way they can develop a desktop OS and make money doing it is if they sell every single computer that runs it. By using a chip that is not a commodity part, they raise the barrier of entry to somebody that wants to copy their ROM settings and make a rival motherboard. Switching to an x86 archetecture jeopardizes that plan. Some think that this is part of the reason why Apple became interested in StrongARM technology last time their relations with Motorolla became strained. If they were to drop Motorolla, I'm guessing that they would be far more likely to contact some other chip maker (i.e., IBM, Siemens, TI, Lucent, AMD, whoever) and contract them to make another non-x86 chipset for them... maybe even one that already understands the existing G3 instructions. For that matter, buying those high-performing G3's that IBM is already making for their servers might even make more sense than moving to Intel.

Still, I can't help but think that a lot of these rumors get started by Apple turf-layers, who are hoping to light a fire under the asses of Motorolla engineers.

In the long term, anything could happen, but...

[jht]

I don't see this as likely, especially in Neff's timeframe. Here's why. The G4 processor doesn't have the legs that the P4 has right now, but Moto is known to be making at least 1.4 GHz parts right now.

Apple also has a policy of running duallys at the high end, and given XServe, we know they have a motherboard/chipset in-house that supports reasonably modern features like DDR and ATA-100. And unless all the rumor sites are wrong, there's a new PowerMac due no later than Seybold in about a month - possibly this month.

So I figure a high-end Mac with dual 1.4 GHz G4 processors, DDR PC2100 RAM, and ATA-100 support is in the cards shortly. That's going to be a reasonably competitive machine for a while, though not quite up to bleeding-edge Wintel specs. There's also likely a little bit more leg in the G4, at least enough to get up around 2 GHz.

Beyond that, Apple's got some options. They can go to quad processors pretty easily, or by next spring they have a good shot of being up on G5 processors, which are reputedly now in sampling. Should they be making the move to G5, that'll probably carry them another couple of years, so we're talking 2005 at the outside before they have to have the next stop in mind.

A lot can happen in that time. The likeliest thing is that they jump to a 64-bit contender that emerges by then - possibly AMD but who knows? Migrating to the IBM POWER processors would be another logical move because minimal work would be required and the additional volume would drive IBM's own costs down significantly. Remember, Apple sells more RISC systems in a year than Sun, SGI (though they don't control MIPS anymore), and IBM do combined - yet all those companies see it as worthwhile to continue investing in alternative architectures. If Apple decided to move their volume systems to a slightly scaled-down version of one of these workstation chips it would have a major impact on cost.

Or Motorola could get serious and start working hand-in-hand with IBM again - IBM's fab capabilities are way beyond Moto's, and IBM could probably build the same G4 as Moto at a higher clock rate with better yields. There is one key reason, though, why Apple doesn't have to worry too much about PowerPC dying - it's huge in the embedded marketplace. Versions of PowerPC are used in all sorts of devices, and I believe it's pretty popular in automotive and networking. That gets your volumes up, too.