Apple and Intel: Best buddies
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| Apple CEO Steve Jobs introduced the MacBook Air on stage at Macworld 2008. The laptop was born after Intel dug into its research pile to fulfill an unusual request from Apple. Photo: Jon Fortt |
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| Click above for a video interview with Intel CTO Justin Rattner. |
When Apple first announced the switch to Intel chips three years ago this month, Intel chief technology officer Justin Rattner didn't expect a chummy research relationship, even though the Silicon Valley companies' headquarters are just 15 minutes apart. Friends had warned him that Steve Jobs and his crew of iconoclasts have little patience for the futuristic stuff of research labs – they're on the hunt for bold ideas they can build into products within months, not years.
So when Rattner, who leads Intel's (INTC) research efforts, gave a presentation to Apple (AAPL) brass about the range of projects his scientists were cooking up, he was pleasantly surprised to leave the meeting with a list of a half a dozen that Apple executives wanted to hear more about. One thing that wasn't surprising: Apple wanted the technology pronto.
"Sometimes it's a little scary because we're just not used to going that fast," Rattner says. "They say, 'We want to do this next year,' and we go, 'Whoa … next year?' We're just not built for that. But once you get past all that, I think it's particularly exciting because they really pull it. And I think MacBook Air is a great example."
If there were lingering doubts about how well longtime enemies Apple and Intel would work together, the svelte MacBook Air laptop should dispel them. Many observers (including this writer) were unsure what to make of the machine when Jobs introduced it in January, especially given that it lacked two common features: a DVD drive and a removable battery. But in the months since, it has taken its place among Jobs' brilliant if unconventional bets. The MacBook Air has been the top-selling computer on Apple's online store for most of the year, even though a similarly appointed laptop without the narrow profile sells for hundreds of dollars less. And Intel can proudly say its researchers helped make it possible.
"That was the first time they actually worked together on a custom project," says Tim Bajarin, president of the Creative Strategies consulting firm. "Before that, everything was pretty much off the shelf. As a result, the relationship grew even further."
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| Intel Chief Technology Officer Justin Rattner didn't expect such a fruitful research relationship with Apple. Photo: Intel |
A few years back, few would have figured Intel and Apple could become buddies. After all, Intel and Microsoft (MSFT) were frequent targets of Apple's keynote antics during its Macworld presentations. Jobs and his entourage demonized both companies as purveyors of inelegant, cookie-cutter technology. Intel was often cast as the foil when Jobs whipped the covers off of some thin, new PowerPC laptop that had a chip from IBM (IBM) inside: You can't get this sort of thing with Windows laptops, he'd say, because those Intel processors are so darn chunky.
Still, not everyone was convinced the two companies would be lifelong foes; early in the decade, Bear Stearns analyst Andy Neff correctly predicted that Apple would soon embrace Intel for its scale, innovation and track record for delivering the goods on time. Fulfilling Neff's vision, Jobs last year invited Intel CEO Paul Otellini onto the stage of Apple's Worldwide Developer Conference to accept a custom-designed plaque as thanks for having "come through every single time for us." Otellini, clearly moved, called working with Apple one of the best things that's happened in his career.
What the crowd didn't know at the time is that Jobs was also thanking Otellini for delivering on a favor. Months earlier, Apple had come to Intel looking for a special order: a small, thin chip package – the sort of component you would need to build an uncommonly slender computer. Apple didn't say exactly what it needed the package for, and Intel engineers at first thought they couldn't help. "Initially we either said, 'We don't have that,' or 'We have that on a roadmap 3-4 years from now,' " Rattner says.
In fact, Intel soon discovered it had the requested technology close at hand. Years earlier, researchers had dreamed up a similar chip in a tiny package, but the idea had been put on the back burner after PC makers gave it a ho-hum reception. The concept just had to be dusted off. "We had that small chip package pretty much sitting on the shelf," Rattner recalls. Within a year, Intel had updated it to meet Apple's needs and delivered it in volume.
What does the future hold for the unlikely partnership? Expect more collaborative efforts like the MacBook Air. Rattner says the two companies are working on more projects that are "equally aggressive" – which probably means there are both tough technology challenges and tough deadlines.
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Belkin International should be losing market share because of their support issues. No more tech stocks for us for quite some time.
Everyone has to agree that Apple is simply the best at one thing: Simplifying technology for the masses.
Many of the posters below are upset because Apple didn't "invent" these products… indeed us geeks were using MP3 players long before the iPod, smarts phones years before the iPhone and slim form PCs decades before the Air.
But we are geeks. We like to tinker and hack and install mods and overclock processors. The general public has no interest in that. So Apple repackages our hacks and mods into a nice slim, user friendly environment and resells it in a form that EVERYONE can use… not just geeks.
I don't use Apple products (they don't let me add my own mods!), but kudos to them for leveling the playing field so that you don't have to be tech-minded to use cutting edge technology to improve your daily life. When grandma is excited about getting a new ipod for Christmas, you know they're doing something that no one has ever done before… and no one has ever done so well.
"If there were lingering doubts about how well longtime ENEMIES Apple and Intel would work together, the svelte MacBook Air laptop should dispel them."
Intel and Apple have never been enemies. Intel was not, but for long before 2005, wanted to be Apple's chip supplier. Now they are a platform suppplier to Apple. That Apple marketed the heck out of the fact that they were using IBM/Moto PowerPC chips in no way made them the enemy. It was more like they were the "hard to get" girl that Intel doggedly pursued. Paul Otellini will even say that Intel execs have long been making trips to Cupertino to convince Apple to go x86. In the end, Intel won over Apple's heart because IBM/Moto took Apple for granted and didn't innovate their product for Apple's market. They also didn't have a credible roadmap that Apple wanted. It sounds a lot like a real-life love/hate/love relationship.
One seldom appreciated fact about Intel is how much Microsoft is loathed there. Microsoft is clearly the dominant party in the Wintel duo, and is not shy of reminding Intel of this fact. The Apple relationship allows Intel engineers to get back at Microsoft, in a passive-aggressive way.
I have a MacAir and a SONY Vaio as well.
The Mac Air is a great looking machine, but not the lightest out there and it does have some drawbacks. The sealed battery is a minus and the front of the laptop is so thin it does dig into your wrist.
It is a real winner in the design category, but as noted not the lightest or best equipped on the market.
Those who just swoon over the Air, need to step back and rank it for what it is, another cool looking apple product but not a huge technology breakthrough
Eric from Ohio, Dude, don't have a heart attack! Here's the deal. The MacBook Air may do the same thing as other computers, but at a fraction of the weight. This, plus the large-capacity, solid-state hard drive that is available as an upgrade to the package, is a major innovation. Smaller, faster and without moving parts! The less movement there is, the less the parts wear out, the longer the equipment lasts. The MacBook Air is the very essence of innovation. The issue has always been, how do I shrink this? With laptops it has always been limited by chip-size and the heat of components. Apple and Intel overcame that issue. So, the next time you decide to dog something, at least study up a bit first! If you don't, you just end up looking dumb.
@Adam:
I've cared for approximately 40 G4's from around early 2000 in our business, and not one fried any RAM. Some were taken home 3 yrs. ago for use as home computers for surfing and e-mail—STILL running. I know about 10 iMacs, from the lamp model to the current aluminum—no screen problems. Have had 20 G5's still running in other dept.'s replaced by MacPro Quad Towers. Only model I haven't liked and had 2 drives die, were a batch of 15 Intel Mac Mini's from 2003.
@Eric-Cincinnati: "Try writing an email on the iphone!"
As a matter of fact, I do that quite often — and text messages, too! Can't say it's as fast as using the keyboard on a desktop, but then I can fit the desktop in my trouser pockets, can I?
Kudos to Apple for making USEFUL products that also happen to have style.
It IS a interesting collaboration… the very definition of commodity processor company working with the company that refuses to make commodity products. (Love them or hate them, Apple products are not commodities.)
And it caps a long term trend of Apple moving to more and more standardized hardware.
The MacBook Air itself is a fascinating product. When announced reviewers and experts looked at the specs and prices and said "nice niche product". Then people started seeing them in Apple stores and they sell like crazy. It is today's Apple in full flower: design, Intel collaboration, and superb retailing. All the pieces coming together. Making serious money in a business that isn't supposed to have margins.
Macs have great marketing, great style, they have came a long way in terms of processing power over the past few years…
I run a shop with a 50/50 split of Macs and Windows. I have Mac and Windows servers. Seaming the two worlds became easier with Mac moving to Intel chips.
That said, I have PC's running that have not gone down in 8 years, (minus 1 dusty power supply.) The Windows machines go and go and deal exclusively with massive Raster and DB processing on them. I have not thrown away one Windows machine…not one. compare that to 20+ macs…we brought in the new laptops and several had to be shipped back within weeks due to bad motherboards and power connections; when the G4's came out they were loud and fried their Ram consistantly due to poor chip location. The Imacs have had screen issues since we got them.
My opinion…both are fine companies, marketing separates them just like any other company would, it trys to gain 'marketing' advantage where is can. Mac is the only real competition and fills the bill for driving competitive development, does that make it a god? No, it is just another company (as good as some of it parts may be,) it has it own issues and it trys to mask them just like any other company.
I also like to point out that Mac is a hardware and software company whereas MS is Software only; If you look at it, it is a rather difficult comparison to make, Mac likes to igonore that so you think that MS must own HP, Dell, gateway, IBM, alien, etc…cheaper to campaign against them all at the same time…
Note: when I use MS or Unix I get to choose my hardware architecture.
-Yes I fine the MS v Mac ad funny.
I've been using Macs for over 20 years (pretty much since kindergarten), and I'm trying to pinpoint when Apple switched from a company that focused on user-friendly and intuitive operating systems to a company that makes flashy consumer products. I'm also trying to determine when Mac users switch from people who desired ease of use and rich features to desiring style and popularity.
It's good to see that Apple's more successful than ever — even though I didn't really care that "market share" was at 3% or whatever, but I'm not excited about where the company and its user base are going. Let's face the facts: people are only buying the MacBook Air so they'll hear people walking by them at Starbucks say "hey, he's using that new thin laptop." The MacBook Air is a fad that will be probably be phased out in about a couple years after the novelty has faded, similar to the Cube.
When you buy a MacBook Air, you're buying a computer for more money and less features that will become obsolete much more quickly than the rest of the product line. Pre-iMac Mac users wouldn't even use a MacBook Air as a paperweight let alone a companion computer.
The technology you are using really doesn't do things the way you would like? But for some reason you can't or won't change; so you attack! This is about hardware, glad I don't know these folks and have to deal with that kind of personality on a daily basis.
Why do some people get upset about Apple products? Clearly Apple often pushes development of new technologies into the mass market. Does every Apple product fulfill all needs, no. No product does. Maybe the iPhone will only capture 20% of the smartphone market, maybe less, maybe more. Either way Apple will provide a product that pushes the envelope, encourages competitors to innovate and guess what, hopefully make a profit. They do not aspire to be everything to everybody. When you try to do that you create a batch of non- descript blah products such as the 100's of varieties of phones that some companies produce. Buying a product that fits your needs should make you happy. If you don't like it then don't buy it. Everyone has different tastes. I personally like typing on the iPhone screen rather than those tiny Blackberry keys. Would I type a term paper on it, no. I didn't buy it for that. Eric from Cincinnati, chill buddy, don't be so hostile. You don't have to be cool…………………… Just kidding.
Homecoming at Cornell? I know and you probably thought you were like the main man with your iPhone. I bet you anything you probably jumped on every chance to use it just so you could show it off. I am not a show off and many that want flashy and cool devices are showoffs. It just reminds me of high school and you aren't graduating like in the cadillac commercial, your just trying to be cool. I just have issues with lies in marketing and those that eat it up like its true. And a Mac was my first computer in the late 90's. Steve Jobs took a page from the Microsoft playbook and one upped it on everyone and is getting huge margins out of all the suckers. Focusing on the 20 and trying to con the 80.
What I find surprising is how people mis-conceive what Apple really does. People say that Apple products are a trend, a fad and not real-market solutions. If this were the case, then that does not explain their recent successes, the obscene amounts of money they spend on R & D, and Market Analysis elements that go into every product they release. Apple is leading the industry in the expansion of new world products and innovation by providing solutions to problems many of us don't realize exist. That is until we find ourselves saying…"Man, I wish I had all my songs in one device" or "This laptop is huge and heavy". Look at what Apple has provided the industry and you will find that its Microsoft that is now following and trying to keep up with the Jones'. You say Apple is a trend, a fad, all flash and no real value. I say that Apple is releasing real market solutions that are creatively packaged to be appealing at the same time.
I wonder why more windiots comment on Mac related articles than M$ articles? I would figure that they have better things to do than hunt down Mac articles and post their hateful comments.
why do people hate apple so much? even if you don't like their products you have to acknowledge they push other companies to keep up and think "new". if apple was only eye-candy and made useless products why does everyone copy them (dell, hp, sandisk, zune, etc)? if it wasn't for apple you wouldn't have a slew of new "touch" phone coming out this summer. or Windows Vista – a MSFT version of OS X. you don't have to like APPL but you do have to give them credit for pushing for new development, or taking existing technology and making it acceptable for the masses.
the macbook, iphone, ipod, they don't just look cool and sleek, they also work great and are well made. with features no others do at the same level.
i did type a 3-4 paragraph email on my iPod touch and it was great.
In the past decade, Apple has deservedly won accolades for their sharp marketing and industrial design.
This article touches upon an under-appreciated aspect of Apple's recent successes: good old-fashioned HARD WORK.
We don't have first hand access to Apple's engineering facilities, but by inference we know that their engineers work long hours and grind it out day in and day out. Just look at their product release schedule. One can work up a sweat just thinking about it.
Apple has leveraged their engineering corps to the limit and their engineers have delivered. Kudos to them.
Eric, Cincinnati, if everyone thought like you computers would still fill a room. My friend has the MacBook Air (I have the MacBook Pro) and it's amazing and exactly what he had always wanted. As for the iphone, I have one. I use 2 thumbs and type faster and with fewer typos than another friend who has always had the latest and greatest Blackberry ever since they came out. As a matter of fact last fall we went to Homecoming at Cornell. We had his Blackberry and my iphone. guess which one we used for all the reservations, restaurants (even looking at the menus), directions, etc?…
in response to eric.
The author stated clearly that the industry operates on an 80-20 rule with Apple focusing on the 20. Your opinion of Apple products clearly puts you in the 80.
Why so venomous to find yourself in the 20. Being part of the 80 means you don't have to be upset about the 20 being acknowledged in the media.
Your are part of the 80 that does not care about stlye or flash.(Though Apple products are far more than that. A fact you'd be aware of if you were make use of a Mac.)
Like the article stated. Not everyone is going to be willing to "pay" for the benefits Apple or Porche may provide. (After all a Porche is merely a car just like every other manufacturer provides. They perform the same functions, some of the cheaper the same or better.)
The point is….You don't have to use a Macbook. The article was about how Intel and Apple have formed a positive and effective relationship after being competitors for years.
You and many others seem to wish just, to continue the Jihad.
Actually, I like the article. I think it demonstrates how Apple is thinking outside the box to find specialty items for its customers. The fact that the MacBook Air is "all about looks and being flashy and cool," as Eric (Cincinnati) says, is exactly why it is popular. It is different and "flashy". If everyone wanted a regular computer, Apple would be out of business and Acer would pick up more sales. But being visible in a bland world is important to some, so Apple sells computers; Moen sells faucets; Tommy Hillfiger and Talbots sell clothes; and Lexus, Mercedes, BMW, and Land Rover sell cars.
Different strokes, folks!
For those PC users that don't get Apple (or are just working for their competitors), you just have to look at the MacBook Air competition. After Apple came out with one, suddenly a bunch of PC makers are declaring they have one also – where were they 6 months ago? Oh yea, Intel had a chip board ready to go but they weren't interested because it was 'different.' In other words, they had a shot and blew it – just like the cell phone companies … BTW, the iPhone, 90% satisfaction rating, the next closest, RIM at 50% … in other words, at nearly twice as good as EVERY other cell phone on this planet … yea, other than that …
People forget that NeXT, the foundation for Mac OS X, was a processor agnostic. Andy Grove and Steve Jobs have been very close friends for a long-time since the days of NeXT. Remember the skunk-works project at Apple that Jobs used to jump ship when IBM/Motorola could not or would deliver the processors that Jobs wanted. Intel had lots of advanced technology that because of its association with Bill Gates/Steve Ballmer Windows OS could not bring out as Justin Rattner says.
I am therefore not surprised at Rattner's comments.
I really don't understand how the Mac Book Air is such a breakthrough. A breakthrough for what?? A small pretty laptop? CNN is head over heals for Apple, I am expecting a wedding sometime soon. Everyone seems to believe that Apple came out of the blue with all these products, but they are nothing more than flashy looking products that do the same as many others. Its just another example of how some people in this world are all about looks and being flashy and cool. My point is being cool is nothing innovative and the marketed society is just eating it up. Try writing an email on the iphone! Many don't, they just read them. Way to be productive with that.
Few days ago when I was browsing technology news I noticed that out of five headlines four were about I-Phone and the other one was Mac related.
But I don't see too many articles about I-Pod; clearly with dominant market share Apple doesn't need promotion there.
I think it's time to start reading my tech news somewhere else.
Another smug Apple-sucking promo, akin to “how we made the iPhone”. It always amazes me how the media thinks that Apple needs to be promoted and presented as the cheerful underdog with stylish clothes but that keeps on dodging the crude bullets of the capitalist monopoly.
I would have to imagine that Apple is going to roll out several products next year with Intel's Montevina WiMax-compatible chips. It's good to see Silicon Valley heavyweights collaborate in the name of innovation.
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