Apple is planning to start using its own chips in Mac computers, replacing processors from Intel, sources tell Bloomberg News, causing shares of the Intel Corporation to plummet.
People familiar with the plans told Bloomberg News on Monday that Apple plans to start using its own chips as early as 2020. The initiative is still in the early stages but is part of a larger effort to make Apple’s devices work similarly and seamlessly together, the sources said.
There was no immediate confirmation from Apple, but Monday’s report caused shares of Intel to fall as much as 9 percent. Shares were down more than 3 points (5.8%) as of 2:50 p.m. ET.
Apple provides Intel with about 5 percent of its annual revenue, according to Bloomberg. Intel has had a turbulent year so far after it was revealed in January that its chips are vulnerable to two security flaws.