Apple Accelerates Chip Design For More Control At Less Cost.
Apple is slowly cutting all outside dependency to its suppliers, including ARM Holdings Plc etc, in order to gain greater control over the technology used in its products. The company is trying to guard hefty margins, by getting involved in its core technology.
Currently Apple is more involved in its fundamental innovations now, than it used to be. Majority of brands rely on outsiders for chip design and other internal development, which are known for expensive price, which helped companies like Qualcomm Inc, ARM and Nvidia Corp, to become the leading processing manufactures in the Android world. Apple is known for creating its own licensed designs and other software, which helps them save a lot of money.
With this approach, Apple is working on a fabricator that can help give you more control, without increasing the overall cost of the device. Tim Cook, Apple’s CEO has also hinted on company’s plan to add augmented reality in its devices, for which they are planning to add a graphic chip and 3 D sensors within its products.
Apple invests $75 million per annum on its Imagination’s chips licensing fee, however the overall chip design adds a significant cost to the total amount. Evidently, by investing in its own chip design, company will be able to save on these external costs.