[Apple Shockwave](23) 'After Smartphones, PCs'... Apple's Advance

Apple Charges into PC Market After Conquering Smartphones
Dual Strategy of Semiconductor Superiority and OS Upgrades in Action
Targeting Microsoft Following Intel CPU Removal and macOS Imitation
Original PC Manufacturer Strives to Regain Pride

Editor's Note[Apple Shockwave] is a content series that examines the upheaval caused by Apple entering the semiconductor market. You might wonder why Apple is involved in semiconductors. Apple is no longer just a company that makes smartphones and computers. After long efforts starting from the founder Steve Jobs, Apple has designed world-class semiconductors used in mobile devices. If Intel was the leader in the PC era, Apple has become the top predator in the mobile era semiconductor ecosystem. Amid the global semiconductor supply chain crisis and large-scale semiconductor production line investments, we will carefully examine the upheaval and prospects in the semiconductor market brought about by Apple Silicon to broaden our readers' insights. Apple Shockwave will be delivered to readers every Saturday. After more than 40 installments, it will be published as a book.

"Apple is striking while the iron is hot." (Computerworld)

Apple Shockwave previously reported that the rise of Mac computers is no ordinary trend. Even as the massive IT purchasing demand triggered by COVID-19 has entered a freezing period, Apple is accelerating thanks to the reputation of its self-designed semiconductors.

Apple handles both hardware and software. However, the history of Apple having true control over hardware is not long. It has been just over a decade since Apple secured its own semiconductors, which had repeatedly been a stumbling block since Apple’s beginnings in Steve Jobs’ garage in 1976.

Apple made a major change when it started its smartphone business. It broke away from computers. This does not mean it abandoned the PC business, but rather removed "Computer" from its company name.

For users who started with the iPhone and iPad, this might be unfamiliar. Apple was originally a computer company. In fact, Apple created the world’s first all-in-one personal computer in 1977. Apple is the "ancestor" of the PC.

Steve Jobs, the founder of Apple, announced at the iPhone launch event in January 2007 that the company name would be changed from Apple Computer to Apple. Photo by YouTube.

Apple removed the "Computer" shackles from its name in 2007. After unveiling the first iPhone, Steve Jobs declared that the company name would change to Apple. It was a bold move with a clear purpose: to transition from a computer company to a consumer electronics company. After tasting market dominance with the MP3 player "iPod," which even computers couldn’t achieve, Jobs made a decisive transformation.

If Apple had been a market leader in computers, it might not have considered entering the MP3 player business. It was that desperate. For Jobs, who pioneered the PC era, it was a frustrating situation.

The PC was introduced to the world by Apple and IBM. Both presented PCs in their own ways, leading to the present. IBM exited the PC market by handing it over to semiconductor and software suppliers Intel and Microsoft (MS). The real competition in PCs shifted to a battle between Apple and the "Win-Tel" alliance of MS and Intel.

Jobs and Apple emphasized the best OS and aesthetic design, but MS continuously chased Apple’s OS. MS often introduced features after Apple had already launched them. The graphical user interface (GUI) and mouse introduced by Mac computers were overtaken by MS Windows. Intel’s CPUs surpassed Apple’s partner Motorola, establishing a near-monopoly.

Apple’s decision to remove "Computer" from its name was essentially a last stand. Although it tasted success with the iPod, it was insufficient to catch up with MS and Intel.

Then, 10 years after Apple first released the iPhone and changed its name, in 2017, the situation changed with the iPhone X, the 10th anniversary model. The performance of Apple’s self-developed iPhone chip, the "A" series, began to improve dramatically. The core semiconductor performance of Android smartphones started to fall behind Apple.

Global PC Operating System Market Share Changes. Blue: Windows, Purple: macOS. Source: StatCounter

The PC "M" series introduced in 2020 caused an even bigger shock. Jobs’ hope for a computer that delivers higher performance while consuming less power and generating less heat?a long-standing wish of PC manufacturers?became reality.

The changes over the past three years since the introduction of the M series chips, commonly called Apple Silicon, are evident in numbers. According to market research firm StatCounter, the global PC market share of macOS recently stands at 21.38%. In the U.S. alone, it reaches 31%.

Considering that macOS’s U.S. market share was only 12.86% ten years ago, this is a significant change. Computer specialist media Computerworld has identified that the rise of Mac computers has become more pronounced since the advent of Apple Silicon.

The market size also reflects this: Mac has grown by 60%, while the Windows PC market increased by only 6%. This signals a shift in the PC market trend.

Apple CEO Tim Cook is seen making a V sign with his fingers while meeting with reporters after the 2023 Apple Worldwide Developers Conference (WWDC).
[Photo by EPA Yonhap News]

Apple Won’t Stop at Smartphones; It’s Taking Over the PC Market Too

Apple is accelerating its conquest of the PC market. Using cheaper PCs than before, bold semiconductor investments, and rapid operating system (OS) support, it is launching an offensive against the Windows PC camp.

Apple is preparing the M3 chip following the M1 and M2. Apple introduced the M1 in 2020 and released the M2 last year. Now, the M3 "bomber" is waiting just one year later.

The M2 chip lineup was recently completed with the highest-performance M2 Ultra. It still shows a sufficient performance advantage over Intel and AMD CPUs. Yet, there are expectations that Apple will unveil the M3 by the end of this year, earlier than initially anticipated.

Apple is said to have secured exclusive access to TSMC’s 3-nanometer process for M3 production. With the process miniaturization, performance improvements are expected to be significant. Since the M2 did not involve major process changes, the M3 is ready to accelerate the previously paused sprint.

Intel and AMD will need more time to secure 3-nanometer process CPUs. Intel has announced plans for a 1.8-nanometer process, but whether production will meet targets is uncertain. AMD is delayed in securing TSMC’s 3-nanometer process due to Apple’s priority.

Apple Silicon is ahead in performance, but the chase route now faces a wall. Computer media Computerworld described this as "Apple is striking while the iron is hot."

The PC market race is shifting from a 100-meter sprint to a marathon. It is no longer a short-term contest but a long-term battle.

Apple Launches Dual Strategy with Semiconductors and OS

Apple's Sonoma macOS, announced for release this fall.

Apple has been serious about its OS. The current macOS started from NextStep, the operating system developed by Next, the company Steve Jobs founded. After acquiring Next, Apple evolved NextStep into today’s macOS.

If the M series was Intel’s "killer," macOS is the weapon aimed at MS. MS released Windows 11 in October 2021. Windows 10 appeared in 2015. The landscape changed in six years. This pace is far behind Apple’s.

Apple upgrades its OS every year. Each year, it unveils a new OS with added features. Ventura OS, introduced last year, is scheduled to be replaced by Sonoma this year.

The name Sonoma is unique. Intel previously used "Sonoma" as a codename for a dual-core CPU for laptops and a Wi-Fi semiconductor set. Apple and Intel use regional names for macOS and CPUs, but it is rare for the same name to be used.

There are also expectations that Apple may soon end OS support for PCs using Intel CPUs. Apple has been known for long OS support for consumers. This is why iPhones, which continuously receive OS updates, last longer than Android phones, which do not. However, macOS support periods have been shortening since 2015. A service period of about six years is a significant turning point.

Intel CPU-based "Intel Macs" are likely to be most affected. Apple has completed the transition from Intel to Apple Silicon, but the true conclusion will be the end of OS support. For example, the MacBook Air, which first used Apple Silicon, had Intel CPU versions produced until early 2020, and their OS updates are expected to end around 2026.

If OS upgrades for Intel CPU Macs are discontinued, consumers are more likely to purchase new PCs. Although a PC can still be used without OS support, it is natural that PCs without manufacturer support, especially regarding security issues, will lose consumer interest.