Apple's Strategic Shift: A New Era in CPU Performance
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Chapter 1: The Evolution of CPU Competition
The ongoing battle in personal computer CPUs can be traced back over forty years. During the mainframe age, IBM established dominance with its System/360, yet for its personal computers, it opted for Intel’s 8088 chip, utilizing the x86 architecture. As part of its arrangement with IBM, Intel was required to find a second-source manufacturer, leading to a decade-long technology exchange with AMD. This partnership ignited an enduring competition focused on delivering increasingly powerful processors.
Initially, AMD produced Intel-licensed versions of various Intel processors, including the 8086 and 8088. However, two years into their agreement, instead of simply replicating Intel's 80286 chip, AMD released its Am286 clone. This was soon followed by the Am386, which directly competed with Intel's offerings. When the Am386 launched, it operated at 40 MHz, surpassing Intel's fastest 386 chip, which ran at 33 MHz. Additionally, the Am386 featured superior power management, making it a compelling option for laptops. AMD’s strategy, articulated by spokesperson John Greenagel in 1992, emphasized competitive pricing paired with enhanced performance.
After a mere nine months in the 386 market, AMD captured 30% of sales, and by January, they were poised to introduce a next-generation 486-style microprocessor, further intensifying competition with Intel.
Section 1.1: Apple's Transition to Intel
Two decades into the fierce rivalry between Intel and AMD, Apple found itself at a pivotal moment. Following a switch from Motorola to PowerPC CPUs in 1994, the Mac's processor family lagged behind competitors. Consequently, Steve Jobs decided to transition the Mac’s architecture to Intel processors, prioritizing power efficiency alongside performance.
Jobs noted, “While Intel offers impressive performance, their power consumption is equally critical for us. We assess performance per watt—how much performance we can achieve for each watt of power. Mid-2006 projections indicated that PowerPC offered around 15 performance units per watt, compared to Intel's forecast of 70, guiding our decision.”
Section 1.2: Intel's Missed Opportunity
Around the time Apple transitioned to Intel, the company sought a supplier for the iPhone's CPU. Intel CEO Paul Otellini later reflected on this missed opportunity, explaining that at the time, the iPhone's potential was not yet recognized. Intel's refusal to meet Apple's pricing expectations led to Apple choosing Samsung’s ARM processor for the first iPhone. This decision laid the groundwork for Apple’s subsequent acquisition of P.A. Semi, enabling them to design their own chips, emphasizing even greater power efficiency than Intel’s offerings.
After years of innovation, Apple introduced the M1 Macs, which significantly outperformed their Intel predecessors, achieving what many considered the best CPU performance per watt in the industry. The following year, Apple further solidified its lead with the M1 Pro and M1 Max, touted as the most powerful chips the company had ever produced.
Chapter 2: Intel's Response
In response to Apple’s advancements, Intel's new CEO, Pat Gelsinger, communicated to his team the necessity to outperform Apple in the PC ecosystem. Intel subsequently launched its twelfth-generation Alder Lake processors, claiming it was “The Fastest Mobile Processor. Ever.” This move allowed Intel to reclaim the mobile performance title, and Gelsinger asserted that Intel was now ahead in the market, leaving AMD behind.
However, while Intel successfully improved its performance with Alder Lake, it did not surpass Apple's leading performance per watt. Alder Lake operates with a power draw ranging between 130 and 140 watts, more than double that of the M1 Max.
Section 2.1: The Future of Performance
If Apple were a different company, it might have felt pressured by Alder Lake to respond with an overclocked version of the M1 Max. Yet, Apple’s focus remains on energy efficiency over sheer performance. Devices that consume excessive power tend to run hot, generate noise, and quickly deplete battery life.
Consider this thought experiment: Would you prefer an Alder Lake MacBook Pro over an M1 Max MacBook Pro? Would you choose a laptop that overheats, produces significant fan noise, and requires constant charging for a minor performance increase?
Fortunately, Apple understands the importance of focusing on performance per watt for long-term success—a lesson learned from Intel's journey that Intel should take to heart.