Apple is moving to custom-designed chips for Mac instead of relying on Intel processors.

Apple is poised to debut internally developed processors in its Mac line in 2021, with the chips coming as variations on the processor for the next iPhone. An Apple-designed, Arm-based chip is expected to launch in "at least one Mac" during the year, according to Bloomberg reporting. The chip's design will be based on the forthcoming A14 processor for the next iPhone models, expected this fall or later, but could offer significantly greater performance than the iPhone version with 12 cores expected, compared to Apple's current-generation A13 processor for the iPhone 11 lineup, which has six cores.

Reports over the past few years have suggested that Apple has been working to develop its own Arm-based processors for its Mac portfolio, which would displace Intel processors. In February, analyst Ming-Chi Kuo of TF International Securities, who has frequently made correct Apple forecasts in the past, predicted a 2021 Mac launch with Apple-designed chips. Apple is currently developing three processors for its Mac line, and processors with more than 12 cores are being explored for launches further out, according to Bloomberg.

Industry analysts offer nuanced perspectives on the transition. Patrick Moorhead, president and principal analyst at Moor Insights and Strategy, said: "I don't expect Apple to completely displace Intel in its PC lineup at once, but I am expecting some select notebooks, maybe the entire 'Air' line, to move over." Moorhead further noted that "In the grand scheme of Intel's business, I don't think it's a very big deal as Macs are the lowest priority business at Apple and we could see share decline. Plus, Intel's strategy is more than just PC CPUs--it is more focused on datacenter and broad compute engines from GPU, ASIC, FPGA and AI accelerators."

An executive at a solution provider that partners with Apple, who did not want to be identified, offered additional insight into the strategic implications: "I think the bigger news around this chip replacement is the long-running idea to switch to Arm on the Macs, and make native iOS code a possibility. One app store, different form factors, same apps and possible binaries. This was Microsoft's/Bill Gates' dream that never quite got there. Apple could even get there before Google, and their long-rumored next OS platform." The executive added: "I suspect we will still have some Intel-based Mac Pros on the high end for now, and perhaps Arm-based A14 chips Macs in the low-end MacAir lineup. It would further boost the battery time. They could also run Intel emulation on the Arm chips for the short term as well, to give folks more time to recompile all the heavy Mac apps and get the macOS ready."

The Cupertino-based company is believed to be interested in developing its own processors to reduce its dependencies on suppliers, particularly as manufacturers like Apple continue to grapple with CPU shortages from Intel that have constrained device production. Apple has accounted for roughly 5 percent of Intel's annual revenue. Apple started using Intel processors for the Mac line in 2006 in a move away from PowerPC processors, and already leverages microprocessor designs from Arm in its A-series processors for iPhone and iPad. The company's desire to do more chip design in-house was further demonstrated when Apple paid $1 billion last summer to acquire Intel's 5G modem business.