Mac users have come to see that Apple had good reasons for kissing PowerPC goodbye. The company knows trends when it sees them: mobile computing has moved past being a mere fad among a few users to become a way of life for many consumers. Yet PowerPC chips aren’t traveling down this road. Apple also needs faster chips, with more room to grow, and a chip partner with a clear roadmap for the future. Otherwise Wintel PCs could run too many miles ahead of Macs in the performance race.
Still, that doesn’t explain how AMD lost out to Intel. AMD has made a name for itself with super-fast machines, especially popular with gamers and bargain hunters, who value the couple hundred dollars you can often save by buying AMD-based PCs instead of Intel-powered ones. Jobs may have liked AMD’s hard-charging rep—but it’s possible he saw some problems he couldn’t ignore.
“One of the biggest considerations for Apple was getting a roadmap in all possible markets where they may play,” says IDC’s Rau, “and if you look at AMD’s product line, there are some holes.” Most notably, AMD hasn’t invested in creating a line of low voltage and ultra-low voltage processors that competes with what Intel offers.
AMD would need to develop a chip core especially suited to low-power, as Intel did with the Pentium M, a costly undertaking. Plus, the overall sales opportunity for such chips isn’t huge yet, says Nathan Brookwood, principal analyst for Insight 64. Because AMD’s research and development budget pales next to Intel’s, AMD has to pick its battles with Intel carefully—whereas Intel makes chips for almost every market niche. “Intel can afford to dedicate the resources,” Brookwood says.
By choosing Intel, Apple gets access to the highly-anticipated chip code-named Yonah, a low-power chip with a dual core processor, which aims to band together the power of two regular chips. Aimed at notebooks, Yonah should arrive in PCs in the first quarter of 2006; in keeping with its tradition of remaining tight-lipped about future products, Apple has not commented on when Yonah might show up in its mobile line.
“Yonah could have been the tipping point for Apple,” says Kevin Krewell, editor-in-chief of the Microprocessor Report. Yonah can power Apple notebooks that fly past today’s models.
AMD does not have a direct Yonah competitor that would be available in the same timeframe that Intel is discussing. Is AMD working on a Yonah-like competitor? AMD won’t discuss timeframe or specifics, but the company is currently developing a low-power, dual-core chip for thin and light notebooks, company spokesman Damon Muzny says.
Intel also employs a huge cadre of programmers, a resource that could be important to Apple as software gets rewritten for the x86 architecture, says Microprocessor Report’s Krewell. AMD’s programmer ranks don’t compare in size.