Apple not switching to Wintel

Some Macintosh software developers were dismayed earlier this month when Steve Jobs announced Apple's plans to switch from IBM to Intel microprocessors . To the fiercely loyal Apple community, the Mac is a lone refuge from the Wintel monopoly.

According to many analysts, the reason for this seismic shift is obvious but unspoken: Apple is tired of owning a tiny slice of the market and wants to compete for the larger pie - perhaps even grab a significant chunk of the enterprise segment. While I'm sure Apple would welcome the additional sales, I doubt the company that built its reputation on making computers "for the rest of us" has decided to throw in the towel and join the PC mainstream.

Apple would be risking the 1.5% of global PC sales it has locked up to enter a brutally competitive market very late in the game. And Apple insists it has no plans to support Windows. It's hard to imagine Jobs, the bold innovator, resigning himself to making Apple-flavored Wintel PCs.

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Some Macintosh software developers were dismayed earlier this month when Steve Jobs announced Apple's plans to switch from IBM to Intel microprocessors . To the fiercely loyal Apple community, the Mac is a lone refuge from the Wintel monopoly.

According to many analysts, the reason for this seismic shift is obvious but unspoken: Apple is tired of owning a tiny slice of the market and wants to compete for the larger pie - perhaps even grab a significant chunk of the enterprise segment. While I'm sure Apple would welcome the additional sales, I doubt the company that built its reputation on making computers "for the rest of us" has decided to throw in the towel and join the PC mainstream.

Apple would be risking the 1.5% of global PC sales it has locked up to enter a brutally competitive market very late in the game. And Apple insists it has no plans to support Windows. It's hard to imagine Jobs, the bold innovator, resigning himself to making Apple-flavored Wintel PCs.

When a big company announces a major change of strategy, it's wise to read between the lines. In this case, however, Jobs' explanation that Intel's technology road map is a better fit makes perfect sense.

Apple's notebook computer, PowerBook, occupies a critical position in its product portfolio. According to Current Analysis, U.S. sales of notebook PCs exceeded sales of desktop PCs for the first time last month. Thanks to its Centrino chipset with integrated Wi-Fi support, Intel is cashing in on notebook PC growth. Apple is justifiably worried: PowerBooks have fallen significantly behind in processor speed and battery life.

Apple understands that wireless technology is taking off in the small business and consumer markets, and is a key enabler for new products. Apple also realizes that its AirPort family of wireless LANs is not nearly enough. Intel has made a strategic push into wireless - particularly Wi-Fi (including the upcoming 802.11n standard) and WiMAX . After years of lackluster results in wireless, Intel's enormous financial investment and persistence are finally paying off.

Apple's digital media strategy is also in synch with Intel's. Apple's iPod music player is a big hit, but surely it is just the first of a whole new category of devices. Intel has been doggedly pursuing the consumer electronics and mobile handset markets. Some even think Intel's Digital Rights Management technology is the main attraction. Whatever the reason, Apple sees Intel enabling almost any portable media device you can imagine.

If there is a casualty of Apple's strategic switch (besides IBM), it is the myth that Apple exists merely to provide an alternative to Microsoft and Intel. Apple's mission is, and always has been, to develop and sell innovative products at a profit. Jobs compared Intel's technology road map with Apple's product road map and saw a match. It's that simple.

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