Preliminary discussions are reportedly underway between Apple and Intel, exploring the possibility of Apple reintegrating Intel chips into certain Mac product lines. This would mark the first time Apple has considered returning to the Intel platform since initiating its transition to in-house silicon in 2020.
Negotiation Context The report indicates Apple's interest is focused on Intel's latest generation Core Ultra 9 processor, which offers significant improvements in both single-core performance and multi-core efficiency compared to its predecessors. Apple may initially test the Intel solution in product lines like the Mac Pro or high-end MacBook Pro, where it could coexist with the in-house M-series chips. The negotiations are still in an early phase, and Apple has not made a final decision.
Apple's Motivation While Apple's proprietary M-series chips have achieved success in performance and power efficiency, some users in high-end desktop and professional application sectors still demand greater memory capacity and multi-GPU support. Intel's Xeon workstation platform supports up to 2TB of memory, whereas Apple's M-series currently maxes out at 192GB. Reintroducing an Intel option could address the needs of professional users and potentially strengthen Apple's bargaining position in negotiations with Qualcomm over modem chips.
Intel's Perspective For Intel, regaining Apple as a customer would represent a significant symbolic victory, signaling a comeback in its chip design and manufacturing capabilities. However, analysts note that the symbolic value of an Apple order outweighs its direct financial impact. Annual Mac shipments are approximately 20 million units, far below the 200 million units for the iPhone, and Apple is unlikely to shift its entire product line back to Intel. If a deal is reached, the chips are expected to be manufactured using TSMC's 3-nanometer process, meaning Intel's own manufacturing division might not directly benefit.
Market Reaction Following the news, Apple's stock rose approximately 0.5% in early Friday trading, while Intel's stock gained about 2%. Year-to-date, Intel has declined roughly 25%, significantly underperforming the Philadelphia Semiconductor Index. Bernstein analysts maintain an "underperform" rating on Intel, arguing that the incremental profit from such a deal would be limited and insufficient to address Intel's structural challenges. Conversely, Rosenblatt Securities maintains a "buy" rating, viewing the development as validation of Intel's product competitiveness.
Analysts suggest that regardless of the final outcome, the very existence of these talks indicates Intel has made progress over the past two years. From a market diversification standpoint, having a choice of chip suppliers is preferable to having none, with the ultimate decision-making power remaining firmly with Apple. Both companies have declined to comment. Should an agreement be reached, new Macs featuring Intel chips could potentially launch in 2027.
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