Apple Changing Chips To Unify Ecosystem

1/9/14 10:08AM EST

Apple Changing Chips To Unify Ecosystem Apple Changing Chips To Unify Ecosystem

Image via Hattanas Kumchai/Shutterstock

Apple Inc. (NASDAQ:AAPL) may have one of the most fantastic ecosystems out there, but that doesn’t mean the company’s product halo is free of problems. Despite the massive success of the company’s iPad and iPhone range Mac sales are still comparably low, and the company does not have anything to compete with Windows dominance in the PC sphere. That may not be a problem for much longer, but Apple will need to change its processors if it wants to compete with Microsoft Corporation (NASDAQ:MSFT) in the traditional PC market.

Analysts have long been touting reports with titles dramatizing the death of the classic personal computer. As desktops are used in just a few niche situations, so too will laptops become the device of the few rather than the ubiquitous engine of the world’s computing. People still have to work on something, however, and right now it’s the laptop, or even desktop, that does most of the heavy lifting in business. There are alternatives, but Apple really doesn’t offer any.

Apple Changes Cores

According to a report from SemiAccurate.com, Apple has decided to change the processors in its mac range from Intel Corporation (NASDAQ:INTC) based x86 models to ARM-architecture chips, like those used in the company’s mobile device. Apple has already laid the groundwork for the move. The chips in the latest iPhone and iPad are 64-bit, a necessary compatibility for the Mac range.

Changing to the same type of processors used in its mobile devices would allow Apple much more room in unifying its operating systems. OSX and iOS are, at the moment, all most completely separate. That’s a problem for any company that wants to dominate the computer space. Microsoft is working on unifying mobile and desktop with Windows 8, and devices like the Surface Pro are already far ahead of Apple’ s efforts.

Apple Heads For Enterprise

Enterprise is a market that Microsoft Corporation (NASDAQ:MSFT) dominates, and it’s one that the company will continue to exert a choke-hold on unless Apple Inc. (NASDAQ:AAPL) is able to compete. In order to do this Apple needs to develop multiple technologies in both hardware and software. Microsoft likes to dominate enterprise and move to the consumer market from there. Apple may be able to do the opposite.

The iPhone is the most popular smartphone in the world, and Apple may be able to leverage that to exert pressure on Microsoft. If the company’s computers and mobile devices are able to run the same applications, business users already acquainted with the iPhone may demand an Apple PC to work with.

Apple has many opportunities in many spaces in the years ahead, but the company’s plans remain opaque to the public. SemiAccurate.com says that the company will abandon Intel, and the website is certain that the change is coming. Intel investors should guard against the risk, while Apple investors should be hoping the company’s gambit pays off.

Disclosure: Author represents that he has no position in any stocks mentioned in this article at the time this article was submitted.