How Intel lost Apple

Apple used a software solution to make sure older PowerPC apps would still work on the Intel machines. Apple decides to rebrand their machines while they're at it, the iBook becomes the MacBook, the PowerBook becomes the MacBook Pro, the Power Mac becomes the Mac Pro, and the iMac becomes the Mac... okay that last one isn't true.

So, Intel and Apple are holding hands and they're in all kinds of love. While all this stuff is happening, Apple is working on a phone of some kind, and get this - Intel had the opportunity to build the processor inside the iPhone. Let that sink in for a second. So, what's the source of this information? Is it a bunch of rumors? Is it conjecture? No, it's Paul O'Neill, former CEO of Intel. He explained the whole thing to The Atlantic.

Dramatic reenactor, Paul, we ended up not winning it or passing on it, depending on how you want to view it. And the world would have been a lot different if we'd done it. The thing you have to remember is that this was before the iPhone was introduced. No one knew what the iPhone would do.

Paul, why, why would you do that? At the end of the day, there was a chip that they were interested in that they wanted to pay a certain price for and not a nickel more. And that price was below our forecasted cost. I couldn't see it. It wasn't one of these things where you can make up on volume.

In hindsight, the forecasted cost was wrong and the volume was 100 times more than what anyone thought. Any other words, you want to add to that?

The lesson I took away from that was while we like to speak with data around here, so many times in my career, I've ended up making decisions with my gut. And I should have followed my gut.

My gut told me to say yes. Well isn't that something? So Apple went ahead with its own chip design for the iPhone and who built that chip for them? Apple's pal Samsung.

Yes, that's true and don't you just love how business works?

So Intel could have powered the iPhone but that didn't happen. But Intel was inside of Mac so that's good. The Apple-Intel partnership seemed to be going swimmingly up until 2015. That's like a nine-year honeymoon.

Let's set the stage for 2015. Barack Obama is the President, net neutrality was protected in the U.S., and the first of many new Star Wars movies is coming up. Enter Skylake, Intel's newest processors, and potentially the beginning of the end of Intel and Apple.

Former Intel Principal Engineer, Francois Pietenol, explained: Take it away dramatic reenactor, Francois. The quality assurance of Skylake was more than a problem; it was abnormally bad. We were getting way too much sight for little things inside Skylake. Basically our buddies at Apple became the number one filler of problems in the architecture.

That went really, really bad when your customer starts finding almost as much bugs as you found yourself. You're not leading in the right place for me.

This is the inflection point. This is where the Apple guys who were always contemplating to switch they went and looked at it and said well we've probably got to do it. Basically, the bad quality assurance at Skylake is responsible for them to actually go away from the platform so yeah that's not great in 2018.

Bloomberg reported that Apple was planning to dump Intel as early as 2020. That's pretty dang accurate. Look, Apple has a history of wanting to control every part of its devices so the reports did not sound crazy at all.

Speaking of controlling every part of its devices, Apple bought Intel's smartphone modem business in 2019 for a billion dollars. So right now, Intel is kind of like that last guest at the Apple party just kind of awkwardly standing there not going home yet but you know don't feel too bad.

Intel's got plenty of other parties to go to. Will Apple ever return to Intel for chips? I'll say probably not if Apple can get the performance it wants out of its computers with its own chips.

Apple will just keep at it. Plus, Apple has a huge app library from iOS and iPad OS that can be tinkered with to fill in any app gaps. I think the real question is will Apple start running ads like this? Where they used to mock Intel, Apple computer would like to apologize for toasting the Pentium 2 processor in public.

But the fact remains the chip inside every new Power Macintosh G3 is up to twice as fast. Maybe could you imagine if Intel powered the iPhone? Let me know what you think about that in the comments.

"WEBVTTKind: captionsLanguage: enit's just a matter of time before apple will be completely done with intel it's kind of crazy apple turned to intel back in 2005 because it cannot manage to get more power into its computers so let's take a look at how intel or from apple's best buddy so well intel this is is and that is the rundown you can jump around with the time codes in the description go ahead i won't mind so let's go back to a time when apple computers did not use intel chips the years 2005 george w bush is the president of the united states youtube is brand new star wars episode 3 revenge of the sith is the last new star wars movie we'll see for over 10 years apple's having a problem it cannot make a laptop with its most powerful chip the g5 the g5 worked well on desktops except for that one cube thing that kept overheating but if you wanted to pop that chip into a powerbook there were going to be some problems here's a quote from david moody vp of worldwide mac product marketing at apple it is fair to say that incorporating a g5 into a notebook as thin and light as the power book is extremely difficult so let's let's think about that a little bit if it can't be thin and light a g5 power book would be heavier and larger that chip also got really hot so you're gonna need fans so it's a fat noisy machine sounds like apple right so june 2005 steve jobs tells the world that apple is moving to intel chips why take it away steve we are gonna begin the transition from the power pc to intel processors now i stood up here two years ago in front of you and i promised you this and we haven't been able to deliver that to you yet i think a lot of you would like a g5 in your power book and we haven't been able to deliver that to you yet 2006 rolls around and we're getting the new intel powered macs and hey they run well apple used a software solution to make sure older power pc apps would still work on the intel machines apple decides to rebrand their machines while they're at it the ibook becomes the macbook the power book becomes the macbook pro the power mac becomes the mac pro the imac becomes the mac mac okay that last one isn't true so intel and apple are holding hands and they're in all kinds of love while all this stuff is happening apple is working on a phone of some kind and get this intel had the opportunity to build the processor inside the iphone let that sink in for a second so what's the source of this information is it a bunch of rumors is it conjecture no it's paul odelini former ceo of intel he explained the whole thing to the atlantic take it away dramatic reenactor paul we ended up not winning it or passing on it depending on how you want to view it and the world would have been a lot different if we'd done it the thing you have to remember is that this was before the iphone was introduced no one knew what the iphone would do paul why why would you do that at the end of the day there was a chip that they were interested in that they wanted to pay a certain price for and not a nickel more and that price was below our forecasted cost i couldn't see it it wasn't one of these things you can make up on volume and in hindsight the forecasted cost was wrong and the volume was 100 times more what anyone thought any other words you want to add to that the lesson i took away from that was while we like to speak with data around here so many times in my career i've ended up making decisions with my gut and i should have followed my gut my gut told me to say yes well isn't that something so apple went ahead with its own chip design for the iphone and who built that chip for them apple's pal samsung yes that's true and don't you just love how business works so intel could have powered the iphone but that didn't happen but intel was inside of mac so that's good the apple intel partnership seemed to be going swimmingly up until 2015. that's like a nine year honeymoon let's set the stage for 2015. barack obama is the president net neutrality was protected in the u.s and the first of many new star wars movies is coming up enter sky lake intel's newest processors and potentially the beginning of the end of intel and apple former intel principal engineer francois pietenol explained take it away dramatic reenactor francois the quality assurance of skylake was more than a problem it was abnormally bad we were getting way too much sighting for little things inside sky lake basically our buddies at apple became the number one filer of problems in the architecture and that went really really bad when your customer starts finding almost as much bugs as you found yourself you're not leading in the right place for me this is the inflection point this is where the apple guys who were always contemplating to switch they went and looked at it and said well we've probably got to do it basically the bad quality assurance at sky lake is responsible for them to actually go away from the platform so yeah that that's not great in 2018 bloomberg reported that apple was planning to dump intel as early as 2020. that's pretty dang accurate look apple has a history of wanting to control every part of its devices so the reports did not sound crazy at all speaking of controlling every part of its devices apple bought intel's smartphone modem biz in 2019 for a billion dollars so right now intel is kind of like that last guest at the apple party just kind of awkwardly standing there not going home yet but you know don't feel too bad intel's got plenty of other parties to go to will apple ever return to intel for chips i'll say probably not if apple can get the performance it wants out of its computers with its own chips apple will just keep at it plus apple has a huge app library from ios and ipad os that can be tinkered with to fill in any app gaps i think the real question is will apple start running ads like this where they used to mock intel apple computer would like to apologize for toasting the pentium 2 processor in public but the fact remains the chip inside every new power macintosh g3 is up to twice as fast maybe could you imagine if intel powered to the iphone let me know what you think about that in the comments i've been ia zaktar and i will see you online thank you dramatic actors you did a wonderful jobit's just a matter of time before apple will be completely done with intel it's kind of crazy apple turned to intel back in 2005 because it cannot manage to get more power into its computers so let's take a look at how intel or from apple's best buddy so well intel this is is and that is the rundown you can jump around with the time codes in the description go ahead i won't mind so let's go back to a time when apple computers did not use intel chips the years 2005 george w bush is the president of the united states youtube is brand new star wars episode 3 revenge of the sith is the last new star wars movie we'll see for over 10 years apple's having a problem it cannot make a laptop with its most powerful chip the g5 the g5 worked well on desktops except for that one cube thing that kept overheating but if you wanted to pop that chip into a powerbook there were going to be some problems here's a quote from david moody vp of worldwide mac product marketing at apple it is fair to say that incorporating a g5 into a notebook as thin and light as the power book is extremely difficult so let's let's think about that a little bit if it can't be thin and light a g5 power book would be heavier and larger that chip also got really hot so you're gonna need fans so it's a fat noisy machine sounds like apple right so june 2005 steve jobs tells the world that apple is moving to intel chips why take it away steve we are gonna begin the transition from the power pc to intel processors now i stood up here two years ago in front of you and i promised you this and we haven't been able to deliver that to you yet i think a lot of you would like a g5 in your power book and we haven't been able to deliver that to you yet 2006 rolls around and we're getting the new intel powered macs and hey they run well apple used a software solution to make sure older power pc apps would still work on the intel machines apple decides to rebrand their machines while they're at it the ibook becomes the macbook the power book becomes the macbook pro the power mac becomes the mac pro the imac becomes the mac mac okay that last one isn't true so intel and apple are holding hands and they're in all kinds of love while all this stuff is happening apple is working on a phone of some kind and get this intel had the opportunity to build the processor inside the iphone let that sink in for a second so what's the source of this information is it a bunch of rumors is it conjecture no it's paul odelini former ceo of intel he explained the whole thing to the atlantic take it away dramatic reenactor paul we ended up not winning it or passing on it depending on how you want to view it and the world would have been a lot different if we'd done it the thing you have to remember is that this was before the iphone was introduced no one knew what the iphone would do paul why why would you do that at the end of the day there was a chip that they were interested in that they wanted to pay a certain price for and not a nickel more and that price was below our forecasted cost i couldn't see it it wasn't one of these things you can make up on volume and in hindsight the forecasted cost was wrong and the volume was 100 times more what anyone thought any other words you want to add to that the lesson i took away from that was while we like to speak with data around here so many times in my career i've ended up making decisions with my gut and i should have followed my gut my gut told me to say yes well isn't that something so apple went ahead with its own chip design for the iphone and who built that chip for them apple's pal samsung yes that's true and don't you just love how business works so intel could have powered the iphone but that didn't happen but intel was inside of mac so that's good the apple intel partnership seemed to be going swimmingly up until 2015. that's like a nine year honeymoon let's set the stage for 2015. barack obama is the president net neutrality was protected in the u.s and the first of many new star wars movies is coming up enter sky lake intel's newest processors and potentially the beginning of the end of intel and apple former intel principal engineer francois pietenol explained take it away dramatic reenactor francois the quality assurance of skylake was more than a problem it was abnormally bad we were getting way too much sighting for little things inside sky lake basically our buddies at apple became the number one filer of problems in the architecture and that went really really bad when your customer starts finding almost as much bugs as you found yourself you're not leading in the right place for me this is the inflection point this is where the apple guys who were always contemplating to switch they went and looked at it and said well we've probably got to do it basically the bad quality assurance at sky lake is responsible for them to actually go away from the platform so yeah that that's not great in 2018 bloomberg reported that apple was planning to dump intel as early as 2020. that's pretty dang accurate look apple has a history of wanting to control every part of its devices so the reports did not sound crazy at all speaking of controlling every part of its devices apple bought intel's smartphone modem biz in 2019 for a billion dollars so right now intel is kind of like that last guest at the apple party just kind of awkwardly standing there not going home yet but you know don't feel too bad intel's got plenty of other parties to go to will apple ever return to intel for chips i'll say probably not if apple can get the performance it wants out of its computers with its own chips apple will just keep at it plus apple has a huge app library from ios and ipad os that can be tinkered with to fill in any app gaps i think the real question is will apple start running ads like this where they used to mock intel apple computer would like to apologize for toasting the pentium 2 processor in public but the fact remains the chip inside every new power macintosh g3 is up to twice as fast maybe could you imagine if intel powered to the iphone let me know what you think about that in the comments i've been ia zaktar and i will see you online thank you dramatic actors you did a wonderful job\n"