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The incredible amount that Apple will save by using its processors

Apple has decided to take an important leap and begin to manufacture the processors of the Mac leaving behind Intel. These processors will be designated by the letter M and the first one, the M1, is now available on three new Macs.

M1 processorApple’s new M1 processor

This step is important due to the change in architecture, which forces adapt compatible applications. But don’t worry, there are many more advantages than disadvantages in this new path that Apple is taking.

And precisely one of these advantages is the money that Apple will save in this change. It is much cheaper to manufacture your processors than to buy them from a third party and this can make Macs cheaper, something that has already happened with these first three models that are more affordable than the previous ones.

A saving of 2,500 million a year

An analysis by IBM suggests that Apple’s shift to self-made processors will save the company about $ 2.5 billion this year. But as Apple introduces more of its own processors to its lineup, more will be saved each year.

The calculations have been done by IBM’s AI strategy leader, Sumit Gupta. According to their estimates, Making the M1 processor will cost Apple $ 40- $ 50. The Intel Core i5 processor used in the MacBook Air cost Apple $ 200, and that was the cheapest.

Apple M1The Apple M1 processor

These are the approximate calculations:

Intel processor costs per year:

MacBook Pro 13: 8.6 million units x $ 250 = $ 2.15 billion MacBook Air: 5.4 million units x $ 200 = $ 1.07 billion Total = $ 3.2 billion

M1 processor costs per year:

MacBook Pro 13: 8.6 million units x $ 50 = $ 268 million MacBook Air: 5.4 million units x $ 50 = $ 429 million Total = $ 697 million

By subtracting these two quantities, we conclude that Apple will save up to $ 2.5 billion using their own processors. Although it is true that the new MacBook Air and Pro have dropped in price between 50 and 70 euros, but still the savings are considerable.

Know more: Apple executives talk about Macs with an M1 processor: “Apple’s model is unique and the best on the market”

Still, even Gupta himself admits that their numbers are very approximate and that it is difficult to determine what it costs Apple to make the M1 processor. He even admits that the cost could skyrocket to $ 100 per unit.