Analyst: Apple uses its own chips | it can save $500 million a year

According to foreign media reports, according to the report of the Bank of America Merrill Lynch, Apple reported that its use of its own chips instead of Intel's products for its personal computer business will boost its financial position.

Bloomberg reported on Monday that Apple plans to abandon Intel chips and choose to start providing internal products for its Mac computers by 2020.

Analyst Wamsi Mohan wrote in a report: 'The chip's internal packaging can protect Apple from the impact of Intel's processor cycles, reducing Mac's cost of material costs by $40-50, and may simplify and reduce R&D spending.'

Mohan said that if Apple uses its own chips, Apple can improve its product development time.

'There are two aspects to Apple's benefits: 1) By integrating the development of iOS and MacOS, you can potentially reduce the time to market for new products and applications by potentially integrating the development team, helping to reduce the overall cost of R&D; 2) Internal Compared to buying a processor from Intel, the processor can help save some costs.

Analysts estimate that if Apple's half of its Mac computers use its own chips, Apple could save $500 million a year. He predicts that the company will gradually use its own products in its product line, starting with low-end Mac notebooks.

He reiterated his buy rating on Apple shares and the target price of 220 dollars, which is a 32% increase from Monday's closing price.