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Apple and Intel's Haswell Chips: A Match Made in Heaven

By: Chris Ciaccia
Posted: 6/3/2013 10:57:00 AM
Referenced Stocks: AAPL;INTC

 

SAN FRANCISCO (TheStreet) -- Apple may announce new Macs at its developer conference next month. Those new computers could have Intel's Haswell chips in them.

Cupertino, Calif.-based Apple "really loves" Intel's new Haswell chipsets, which are designed to have improved graphic capabilities, something Apple is looking for with its next-gen Mac computers. The new chips from Intel, slated to be released in June, will allow laptops to play 4K video, the next-generation in high-definition video.

Including Haswell not only could beef up the graphics on the new Macs, but it could boost battery life as well. KGI Securities analyst Ming-Chi Kuo, who is as tied into the Apple supply chain as anyone, believes Apple's new laptopcs will have Haswell in them. If that's true, Haswell could boost the battery life by up to 50%, which would give Apple another advantage over non-Haswell laptops.

Though Apple has been able to fare better than the PC market as a whole when it comes to sales declines, reinvigorating its lineup with Intel's new Haswell chips could be a boon for Apple (AAPL), as well as Intel (INTC). UBS analyst Stephen Chin, who rates Intel "neutral" with a $22.50 price target, expects that Haswell will "potentially slow the decline of PCs in 2H13. In addition, discrete-class “Iris Pro” graphics could support incrementally higher ASPs."

Apple's Worldwide Developer Conference is slated for June, starting June 10. The company is expected to show off its latest mobile operating system, iOS 7, as well as its desktop operating system, OS X.

Intel, which recently announced Brian Kraznich as its new CEO, is trying to improve its image with shareholders, while juggling its relationship with existing customers. Intel's core business, PC chips, is slowing, though it is still profitable for the world's largest chipmaker. Intel is now trying to focus more on smartphone and tablet related offerings. Intel's latest offering in this space is the Silvermont family of chips, designed to compete with ARM-based chipsets, which have a dominant position in the mobile device marketplace.