Apple does Intel

Well, well, well - they finally did it - the x86 Mac. The Mac will be powered in future by the same Intel x86 (or AMD) chips that Windows PCs use. Apple CEO Steve Jobs said that their new hardware will not run Windows, and that Mac software will not run on a Dell, but surely some enterprising company will market a product that makes it so.

Apple have famously shot themselves in the foot with CPU choices over the years. First the 6502 chip on the Apple II was on the anemic side. Then the Lisa/Mac went with the 68000 breaking compatibility with Apple IIs. And then on to the PowerPC which is losing the performance race to x86.

I actually think this is a good move for Apple. Their stylish hardware will now be available for the many who would like to run Windows. Their stylish software will now run on computers that are more common than Apples. The Mac has always been a stylish luxury good, this will (IMHO) revive their market share in the computer industry. But I'd wait a quarter to buy - sales will be way off on the lame duck G5 models and the stock price should take a hit as a result.

AAPL closed today at $37.92. I'm suggesting that it will be lower after they report results 13-Oct-05 5:00 PM, and after that it may be a buy.