Intel shares plummeted by 9% following a Bloomberg report that Apple Inc. is planning to replace the chip supplier for its Mac computers. The tech giant is reportedly planning to use its own chips by 2020, starting with PCs then replacing them in smartphones.
Apple is developing its own processor for computers and laptops. The Kalamata project is in the early stage of development. First devices with Apple processors are expected to appear in 2020. By that time the technology giant will ditch Intel shipments, which would result in serious losses for the largest chipmaker.
The share of Intel's revenue, attributed to Apple, was never disclosed. However, analysts estimated that the revenue from the chips for iPhone LTE modems was at $1.5 billion with total annual revenue of $60 billion in 2016.
According to Bloomberg, Apple provides Intel with about 5% of its annual revenue.
Markets reacted to the news with Intel's shares ending New York session down more than 6% on April 2. The company’s shares sank by more than $3 per share to $48.92.
