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June 7, 2005
 

The Apple move

Based on reports I have seen the reasons why Apple decided to dump the PowerPC in favour of Intel supplied processors:

  1. Price/Speed (IBM apparently was unwilling or unable to match price/speed ratios of Intel processors now or for future processors)
  2. Apple wants to maintain control of its arts related market (Intel's hardware support for DRM was a large factor)
  3. Apple wanted to have more potential flexibility in processor suppliers (AMD has not been specifically mentioned but I am guessing is a factor).

Cons:

The negatives seem that (despite claims to the contrary) this will cause a large bump in the road for Apple. Not all software is going to be converted as smoothly as they claim and this will inevitably cause some purchase delays (the Osborne effect) even if all goes well.

Pros:

Jobs/Apple may well have felt though that this (movement away from PowerPC) was inevitable and are picking the best possible time (when iPod sales are contributing heavily to the bottom line, Microsoft is temporarily floundering with their Longhorn release). They probably feel like they have their ducks in as good a row they could every have. They may have to use some of their squirreled away multi billion dollar cash/investment cushion to get through this but what are contingency funds for other than contingencies?

11:11:29 AM        comment []   


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