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Apple-AMD Rumors Gain Traction

Posted by: Arik Hesseldahl on November 17

I’ve asked Hector Ruiz, the CEO of chipmaker Advanced Micro Devices about his views on Apple several times, especially in light of Apple’s switch to using chips from Intel over the last year and change. He’s always been at once supportive of Apple, and happy that the Mac now runs on an x86-based processor. But he’s never confirmed any talks between Apple and AMD concerning microprocessor supply deals.

So what then to make of this? Digitimes of Taiwan, which is often a good source of early warning intelligence about such things, is reporting on the surge in demand for a particular type of component that is going to be used in an Apple-made notebook that would use an AMD chip.

The component is called a Multi-Layer Ceramic Capacitor or MLCC, and the notebook in question allegedly requires 70 of these parts, and supplies of the part are already tight. A current Apple notebook using an Intel dual-core chip apparently requires 80 of these MLCCs.

One interesting note, is that AMD recently acquired graphics chipmaker ATI, and Apple is an ATI customer. Owning ATI gives AMD yet another entry into Apple HQ in Cupertino, and would offer AMD the chance to give Apple some pretty sweet package deals. But then again, its not as if Hector and Steve Jobs don’t already have each others phone numbers.

But here’s one reason I’m doubtful about this report: AMD can’t make enough chips right now to meet its current demand. I’ve heard from a few PC makers that AMD’s factories are on allocation status, which is industry jargon that means not everyone is getting as many chips as they’ve ordered. One big reason for this is AMD’s new relationship with Dell.

If ever Apple and AMD do business together, however, I think it will be on the server front. Server customers like flexibility and having the ability to choose the chip you want is important to server customers, so I think we’d see an AMD-based XServe before an AMD-based Mac Pro.

That said, the number of Intel-only PC makers is dwindling. The only other Intel-only major PC maker I can think of is Toshiba, and it only makes notebooks. After losing some of Dell’s business to AMD, Intel will put up a fight to keep its exclusivity with Apple, which, honestly, wouldn’t be a bad thing.

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Reader Comments

George

November 18, 2006 03:26 AM

Apple will never use AMD chips. Why? One word, LOYALTY! CEO Steve Jobs didn't invite Paul Otellini onstage just to stab him in the back later on by moving part of its products to AMD.

Intel courted Apple and both companies kept the love affair a secret until it was the right time. Intel has probably helped Apple behind the scenes in a tremendous way.

The only way I can see Apple breaking its Intel only focus, is if Intel does something very, very stupid. I don't know what that might be.

Lastly, this AMD in Apple foolishness is nothing but a distraction engineered by both Apple and Intel to divert attention on something even better by the two companies.

George

Black Knight

November 24, 2006 10:36 AM

Hello George, interesting comment about loyalty and without a doubt Apple builds long term partnership with vendors.
Another trademark from Steve Jobs is dual source, during the PowerPC era Apple kept IBM and Freescale (Motorola) as suppliers and got the best service by leveraging the two partners.
Never say never, the attraction of Apple is the innovation created, Steve Jobs is a demanding customer, at the same time he is a marketing wizard.
All the best!

JoeyJoe

January 2, 2007 12:14 PM

Arik,
I know that I am an old dinosaur but I can't help it. More accurately, I don't want to help it. I am comfortable in my little box. I own several g4's and it is getting to be time for an upgrade. The problem is, quite simply, I don't want and intel based computer. No, I haven't let go of Motorola. I liked being different. I like AMD. I will most likely hold out till Apple makes the switch... again. I don't know what influence you have over getting Steve and Hector to work together but could you maybe make some calls; or buy them both drinks. Having the best operating system in the world is nice but having the best pocessor would be even better.

peace and love

Craig

July 27, 2007 11:06 PM

I would love to see Apple team up with AMD. In my mind Intell is like the Microsoft of the processor chip and we all hate Microsoft. As far as Apple loyalty goes, I'm not so sure that Apple wouldn't turn and go with another chip if they felt it was the right move. I remember hearing that IBM was a bit shocked when Apple decided to drop their processors. Intell is a big boy company, they don't need Apple's loyalty just as Apple doesn't need Intell's loyalty to not sell to PC makers. I don't get the impression that Apple is particularly buddy buddy with AT&T either. Their just out there making the best product that they can, with the best service possible.

Bryan

December 19, 2007 01:11 PM

Hector Ruiz also promised Apple high performance PPCs while he was at Motorola and didn't deliver.

Apple also has had a very turmultuous relationship with ATI.

Right now Intel is also bending over backwards for Apple.

 

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A blog on the daily doings of Apple and the many companies in its orbit, with insight and analysis by two longtime Apple-watchers BusinessWeek Senior Writer Peter Burrows and BusinessWeek.com Senior Technology Writer Arik Hesseldahl.

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