Analysts tracking Apple Inc.’s “Unleashed” event are terming the arrival of M1 Pro and M1 Max chips as a “game changer” and a signal that the tech giant is giving Intel Corporation a run for its money.
Apple’s Game-Changing Move
Wedbush’s Dan Ives who has an “Outperform” rating on the Tim Cook-led company with a 12-month price target of $185 said in a note that “proprietary M1 Pro/Max processor is the foundational part of this MacBook and ultimately we believe will be a game changer that will convert 30 percent+ of current MacBook users to upgrade over the next year catalyzing growth on this hardware segment.”Ives noted that Mac loyalists were awaiting the release of these chips for the past six months as “Cupertino continues to be in the midst of its biggest hardware refresh cycle in roughly a decade with today’s event adding to these product tailwinds.”
Winning the Game
Loup Ventures co-founder Gene Munster said in a note that Apple’s announcements highlighted the progress the tech giant has made in chips.“Five years ago, the thought of Apple designing a chip that competed or exceeded Intel specs was farfetched,” wrote Munster.
“Our view is that Apple is now beating Intel at its own game, with chips that deliver a better Mac experience compared to machines powered by Intel.”
Munster noted that using ARM-based chips instead of those made by Intel “strengthens the Apple ecosystem.”
The analyst said that in the past iOS apps had to be reconfigured and custom-built for the macOS, which was both time and capital intensive but “now that both iPhone and Mac run on ARM-based Apple chips, iOS apps can be published by default on macOS.”
As per Munster, Apple developers, consumers, and the company itself benefit from the company’s foray into silicon.
Price Action
On Monday, Apple shares closed nearly 1.2 percent higher at $146.55 in the regular session and rose 0.14 percent in the after-hours trading.By Shivdeep Dhaliwal
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