Thursday, August 7, 2025

A Reader Suggested Apple Buy Intel -- August 7, 2025

Updates

August 8, 2025: another example of where Apple / Samsung are. Link here. Apple was the first to market dual chips, and then two-layer stacked chips, and now three-layer stacked sensors.

August 8, 2205: Intel's CEO, under attack from Trump, is already at odds with his board. Link here.

Original Post

My reply, not ready-for-prime time. There are likely many typographical and content errors:

Intel has been unable to make chips to the specifications that Apple wants / needs.

[On top of that: lots of bad blood between Intel and Apple. Decades ago, Steve Jobs went to Intel first when he needed help with chips for his newly conceived iPhone and Intel said they would not deal with Steve Jobs. Steve Jobs probably left a handwritten note to Tim Cook reminding him of that and had the note glued to the refrigerator in Tim Cook's kitchen. LOL]

In most recent earnings guidance, Intel amazingly even went so far to say that they won't begin manufacturing their new chips (14A) if they don't have any customers. Their 14A chip was slated to begin in 2026 or 2027 -- I forget when -- but by then the industry will be even farther along.

Intel could have the best chips in the world right now but MOJO isn't there. Too many other options. But having said that, nothing surprises me. If Intel picks the CEO that Trump wants, things could change overnight. Being reported right now on CNBC: Intel's current CEO has confirmed history of dealing illegally with Chinese some years ago. Or something along that line.

Apple has three, maybe four divisions, which I've written about before. I consider each of the three (or four) trillion-dollar divisions and Apple Silicon is their chip division. By market cap, it may be the biggest chipmaker in the world. I could be way wrong on that, but Apple Silicon makes a lot of chips. Remember: Apple has 2.35 billion devices worldwide.

Apple Silicon designs their own chips and TSMC is making those chips in Phoenix. Not all Apple chips are made there but enough to keep everyone happy and over time, all Apple ships will be made in the US even without Intel.

Apple has its Apple Silicon supply chain "end-to-end" strategic plan complete. Even if they got Intel for free, Tim Cook would probably not be interested.

So, Tim Cook just completed a most amazing pivot that was announced in the White House yesterday -- the Apple American Production Company.

So the CHIP strategy is complete. Tim Cook now moves on to AI and satellites.

Now they move on to satellite connection for global reach (Africa, India, China, much of Australia) -- Starlink; Kuiper; and a third one that is specific for Apple which I've forgotten; T-Mobile to Starlink is already in place.

AI: I think Apple has a "just good enough" interim AI plan but long term it's still being worked. I had an incredible idea for Apple AI, satellites, and passed it by ChatGPT which was, of course, laudatory. LOL. After posting it, I realized why it won't work -- Sam Altman and Elon Musk hate each other. So, Apple has a huge choice: go with the best (Sam Altman / OpenAI) or go with the "other" two bests: Anthropic or Perplexity.

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The most amazing thing: Apple spends almost no "new" money on CAPEX ... what Tim Cook announced in White House yesterday was pretty much already announced. Yesterday, it was just marketed as a much more coherent policy. But $600 billion over four years -- LOL -- $150 billion / year for a $3 trillion market cap company.

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The one company that could be a real sleeper: Qualcomm.

It's going to be a shootout between Apple's C1 and Qualcomm's X85 5G Modem-RF.

Of all my tech, QCOM is the most worrisome but after another look at the two cell phones / satellite modems -- it comes down to Apple vs Android, C1 vs X85 5G Modem-RF.

If one were going to invest in only two or three cell chip / tech companies, QCOM would not by on my list, but I have a lot of it and have had it for years.

Above, not proofread.  I assume there are typographical errors.

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