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Analyst: Apple Shift to Intel Will Not Change IT Plans

By ECT News Business Desk MacNewsWorld ECT News Network
Jun 8, 2005 10:29 AM PT

Apple's move to Intel-based processor architecture starting next year will have no material impact on IT plans or projects, IT-analyst firm Info-Tech Research Group says.

Analyst: Apple Shift to Intel Will Not Change IT Plans

"An under-the-covers processor does not provide competitive differentiation, so there is no market pull causing Apple to make the switch," Carmi Levy, senior research analyst at Info-Tech Research Group, said.

"Apple is moving to Intel's Pentium D architecture simply because it has no other choice. Maintaining a competitive processor platform in today's hot market demands billions of dollars of ongoing investment which the G5 simply can't attract and the Pentium family can," Levy explained.

No Shift from Windows

"Aside from media hype, the truth is that Apple isn't a significant player in the broader business PC market," Levy observed. "This is an announcement that on the surface sounds significant but will have no meaningful impact on the marketplace."

Although Apple continues to have significant strength in niche markets like graphic design and education, its current overall market share hovers around 2.5 percent, and has been in steady decline for well over 10 years.

Levy said: "This decision won't suddenly cause the world to shift away from Windows and toward OS X. There are as many compelling reasons to do so -- namely, none -- now as there were prior to Apple's announcement."

G5 Processor Is Dead

"This is essentially a dead platform whose manufacturer made the decision to abandon it solely due to the G5 processor family's lack of a roadmap," the analyst explained.

Apple's abandonment of the G5 is the death knell for this processor family, Levy opined. Other companies using it as a product platform should rapidly evaluate other more strategic options -- just as Apple has, the analyst advised.

"Apple continues to have a small and loyal client base in certain markets. This announcement should give them comfort that Apple is making the right decision in moving to a more strategic processor platform that gives them a long term growth path," Levy said.


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