How Apple Helped Intel Leap Ahead

 
On June 6, 2005, Apple Inc. (NASDAQ:AAPL) signed a deal with Intel Corporation (NASDAQ:INTC).  Apple switched to using Intel’s chips despite the fact that Intel and Microsoft had a strong partnership.  Justin Rattner, CTO of Intel was skeptical about the Apple partnership because Steve Jobs is known for his sudden ramping up of products.

“Sometimes it’s a little scary because we’re just not used to going that fast,” stated Rattner. “They say, ‘We want to do this next year,’ and we go, ‘Whoa … next year?’ We’re just not built for that. But once you get past all that, I think it’s particularly exciting because they really pull it. And I think MacBook Air is a great example.” 

The success of Apple and Intel’s relationship is symoblized by the consumption of the Macbook Air this year.  The Macbook Air was the top-selling computer at Apple stores this year despite the lack of an removable battery and DVD/CD drive.

The Macbook Air “was the first time they actually worked together on a custom project,” stated Tim Bajarin, President of Creative Strategies. “Before that, everything was pretty much off the shelf. As a result, the relationship grew even further.”

Before signing the partnership with Intel, Steve Jobs would often times criticize Microsoft’s culture and technology along with large sizes of Intel processors.  Prior to the Intel partnership, Apple used PowerPC processors.  PowerPC was created through a partnership between Apple, Motorola, and IBM.

Last year Steve Jobs told the audience at WWDC that Intel had “come through every single time for us.”  Paul Otellini, CEO of Intel mentioned that the Apple partnership was one of the best accomplishments in his career.

Information Source:
[1] Apple and Intel: Best buddies by Jon Fortt

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