On Tuesday, Apple unveiled new Mac laptops featuring its new M1 microchip, WSJ reports.
What is the M1? It’s a microchip the tech giant designed in-house to give devices “faster performance, better battery life and, maybe, bigger profits.”
How did we get here? Apple co-founder Steve Jobs began a 15-year relationship with Intel back in 2005 to improve Apple computers’ performance, which was then its primary business. The release of the M1 marks the breakup of the two corporate giants and is the “latest example of tech companies developing their own computing power.”
So, how does this benefit Apple? Bringing in more in-house components opens up opportunities to cut costs and bring special features to products. Production of the iPhone has already followed a similar path.
The Big Picture: Improvements to the Mac line only enhances the seamless network effect of Apple’s products, and the company is looking to diversify its revenue streams to “augment falling iPhone sales.”
These new Mac announcements don’t fundamentally change my view on Apple ($AAPL). It seems like they are refreshing an old product line to stay relevant instead of opening up new growth opportunities.