Market News

AAPL is Chipping Away at the Competition with its Chip

Apple’s (NASDAQ: AAPL) bet on making its own chips is paying off handsomely, according to an Apple executive. The tech giant had ditched Intel (INTC) around two years back and had started making its own chips. Apple’s new MacBook Pros and Mac Minis are fitted with its latest processors and this is working for the company.

Bob Borchers, VP of worldwide product marketing at Apple told Yahoo Finance, “If you look at even just the gains between M1 Pro and M2 Pro and M2 Max, you know, the CPU performance has gone up 20%, GPU’s is 30%. This is not normal for the way in which platforms like this advance. A few years back, you would have been happy with 5% here, 6% there, etc.”

While the improvement in processor speeds is a big positive for the company, another advantage is that manufacturing its chips has enabled AAPL to avoid third-party difficulties.

Elaborating further on this, Tim Millet, Apple’s VP of platform architecture commented that third-party suppliers could be reluctant to customize their chips according to AAPL’s preferences as “They’ve got to sell that chip to maybe 10 more customers that don’t necessarily care about the same things Apple cares about.”

But with the company making its own chips, “We don’t have to worry about that problem when we’re building chips for ourselves. And that, I would argue is…the thing that is providing a unique advantage.”

AAPL Could be Violating Workers’ Rights

In another piece of news, AAPL could be guilty of violating workers’ rights, Bloomberg reported on Tuesday.

The U.S. National Labor Relations Board (NLRB) general counsel’s office’s spokesperson told Bloomberg that the NLRB has found that “various work rules, handbook rules, and confidentiality rules” imposed by AAPL “tend to interfere with, restrain or coerce employees” from exercising their right to collective action.

The NLRB also found merit in an earlier charge levelled against AAPL by two former employees accusing it of prohibiting “employees from discussing wages, hours, or other terms or conditions of employment.” NLRB stated that with these restrictions, the company was in violation of the National Labor Relations Act.

The Board made it clear that unless Apple settles, NLRB could issue a complaint against the company.

AAPL is expected to announce its calendar Q4 earnings later this week. Meanwhile, analysts are bullish about AAPL stock with a Strong Buy consensus rating based on 23 Buys and four Holds.

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