Description: Apple is planning on making its own chips for its Mac computers, perhaps dropping Intel as a supplier. Apple reportedly is responsible for about 5% of Intel’s revenue. By producing its own chips for Macs, Apple could gain the advantage of better integration between its various offerings of hardware and software.
Date: April 2, 2018
1) Are you an Apple user? Why or why not?
2) What might be driving this strategic decision by Apple?
3) On page 259 of Wiley’s Financial Accounting: Tools for Business Decision Making, we read about Apple’s gross profit margin on the iPhone SE. Do you think by making its own chips Apple will change the gross profit margin on its Mac computers?