Daily Management Review

Apple’s New Premium-Priced MacBooks Show Case Its Focus On Chip Strategy


In an effort to move away further from the previous chip supplier Intel Corp, two new MacBook Pro models were unveiled on Monday by Apple Inc that is powered by the more powerful in-house chips. The unveiling also underscored the strategy of the iPhone maker of differentiation of its hardware from the remainder of the PC industry.
The most expensive configurations of the new 14-inch and 16-inch models are priced between $1,999 and $6,099. Compared to rival PCs that are powered by Intel and Advanced Micro Devices, the new laptops, which use two new chips called the M1 Pro and M1 Max, will perform much better especially when the new laptops of the company are used solely on battery power.
The target customers that Apple is apparently appealing to through its unveiling of the new machines via an online event include a group of users such as professional photographers, film makers, and audio producers who desire to have a powerful PC – which is a segment that has attracted rivals such as Microsoft Corp – which has attempted woo the same segment with its Surface hardware lineup.
According to analysts, machines unveiled on Monday by Apple also reflect what people can expect of Apple’s machines when it completes the two year transition period away from the use of Intel chips – which gets completed next year. Thanks to the chips, Apple has been able to increase sales of Mac by 32 per cent the first nine months of the company’s fiscal 2021 to $26 billion.
Last year, Apple had launched its first chip for its laptops – called the M1, which was used to power the company's lower-cost MacBook Air and Pro models last year, and the chips offer some additional benefits compared to Intel's chips.
But, according to Ben Bajarin, head of consumer technologies at Creative Strategies, these differences have turned out to be more pronounced with professional-grade chips, whose features will likely be also used in the lower-end models of the machines of the company in the coming years.
"This is the first bedrock that has been laid architecturally, and in many ways, it's unprecedented to see this level of performance at this level of power efficiency," he said.
Up to 100 watts less power than other high-end laptop chips is used by the M1 Max chip which ultimately extends the battery life of devices, said Johny Srouji, Apple's chip chief.
"It's the most powerful chip we've ever built," Srouji said of the M1 Max.
The 14-inch model will cost $1,999, while the 16-inch model will cost $2,499, according to Apple. The company has announced that both computers will be shipped starting next week.
At its Monday event, Apple also unveiled a slew of new music-related products. A $5-per-month version of its streaming music service was also announced by the company on Monday, and this new feature will give users access use Apple's Siri voice assistant to gain access to the company's entire music catalog.
There was a 0.4 per cent rise in the stocks of rival Spotify Technology SA after Apple announced that its full service will still remain at $10 per month.