According to the Bank of America Merrill Lynch, the media reported that Apple's use of its own chips to replace Intel chips in PC products will boost its financial performance.
An analyst of the company said that even if half of Macs configure Apple's own chips, Apple can save 500 million US dollars a year.
Bloomberg News Monday said that Apple plans to use its self-developed chips to replace Intel chips in Mac computers from 2020.
Wamsi Mohan, analyst at Bank of America Merrill Lynch, wrote in an investment report released to clients on Monday, 'Benefits of in-app purchase chips for Apple include: Reliance on Intel's processor product cycles to reduce Mac component costs by $40 to $50, and reduce R&D expenditures. '
According to Wamsi Mohan, if you use proprietary chips, Apple can also shorten product development time. 'The benefits to Apple are twofold: First, through possible integrated development teams, to shorten the time for new products and new applications to hit the market, to develop cross-iOS And MacOS platform products help to reduce overall R&D costs. Second, compared to purchasing processors from Intel, autonomous development can reduce part of the cost'.
Wamsi Mohan estimates that If Apple uses its own chips in half of its Mac computers, it can save $500 million in annual expenditures. He predicts that Apple will gradually use its own chips in all Mac product lines, but the initial use of its own chips will be low-end Mac notebooks.
Wamsi Mohan also reiterated the 'Buy' rating on Apple's stock and the target stock price of 220 US dollars, which means that Apple's stock price still has 32% upside compared to Monday's closing price.
