If that happens, the Mac computer line would have processors similar to the recent A11 bionic chip in the iPhone 8 and iPhone X. All iPhones, iPads, Apple Watches, and Apple TVs now have Apple-made chips based on technology from software designer Arm Holdings Plc.
The report is very brief and developing, but it says the initiative is code-named Kalamata and is part of a larger effort to get iOS devices and macOS devices to work together better. In fact, the Intel chips are some of the only major components that are designed by people outside Apple.
"While it's possible that Apple may replace Intel in some of its lower-end product lines, we think it will be hard for Apple to completely replace Intel by 2020, especially on its higher-end offerings", said Summit Insights group analyst Kinngai Chan.
Macs account for just a small proportion of Apple's overall product package.
"While this is clearly a risk to Intel, we believe it is a minor one, as Apple CPUs (central processing units) likely drive only about 4% of Intel's revenue", Muse said.
Sales actually roses 4pc in 2017 even as the wider laptop and desktop market continued to slump due to the rise of smartphones and tablets.
Duke of Edinburgh admitted to hospital for hip surgery
Philip's surgery comes after he was forced to miss out on numerous events over the Easter period due to problems with his hip. After the second world war, he got married to Elizabeth II in 1947 and abandoned his Greek and Danish royal titles.
If Apple steps away from its partnership with Intel on Mac processors, the impact to Intel would be "less severe than investors seem to fear", Evercore ISI analyst C.J. Muse said in a note to clients.
Shares of Apple stock opened at $166.68 on Tuesday.
"We can push the envelope on innovation". However, the Cupertino firm has been dropping hints with regards to its impending decision to become its own manufacturer of parts as far back as past year, when Apple executives revealed that they were eyeing chip-making startups.
The iPhone X is Apple's first handset to sport an OLED screen instead of LCD, but Apple is already planning a new display revolution for its products, not just the iPhone.
The T1 chip powers the Touch Bar and authenticates Touch ID. Apple has been trying to make this happen for a long time. Also, the first generation of Apple Watches lacked the necessary resources to run social network apps.
The above development, however, isn't entirely unexpected.