Why didn’t Mac Apple M1 series cut their prices Deutsche Bank: TSMC casting costs are not low

On the 10th, Apple Inc. announced the first batch of the Macintosh series of built-in M1 processors, phasing out Intel processors (Intel Corp.) and receiving enthusiastic responses from the market. However, the market originally believed that Apple’s use of its own designer processor should be able to reduce costs and sales prices, but this is not the case. Analysts believe this may be related to TSMC’s smelting cost.

Barron’s reported on the 11th that Deutsche Bank analyst Jeriel Ong released a research report stating that the prices of the latest MacBook Air and MacBook Pro with built-in M1 processors remain unchanged, which is very surprising. The market originally thought that Apple’s chip design should be able to cut prices.

Ong said one possible reason is that the M1 is not cheap. M1 is the world’s first PC processor produced using TSMC’s 5nm process technology. Furthermore, M1 is also the largest Apple Silicon with the most transistors. Larger chips tend to have more performance issues.

However, Ong believes that the shift to Macintosh computers with built-in M1 processors is expected to allow Apple to gain more share of the PC market. Apple mentioned that more than half of Macintosh computer buyers last season were first-time buyers. He maintained Apple’s investment rating of “buy” with a price target of $ 140.

Atlantic Equities analyst Ianjit Bhatti also maintains Apple’s “overweight” investment rating, with a price target of $ 150. He believes Apple’s PC market share is finally expected to rise from 8.5% in the previous quarter to 15%, which is in line with the global smartphone market share.

According to two press releases issued by Apple on the 10th (press release one, press release two), M1 is the first PC chip to use cutting edge 5nm process technology. There are up to 16 billion transistors on the chip. The chip field can be said to be the fastest CPU core in the world, and the CPU performance per watt is the best in the world, and Apple Neural Engine offers revolutionary machine learning performance.

Compared to previous generations of Macintosh computers, the M1’s CPU performance is up to 3.5 times faster, the GPU performance is up to 6 times faster, machine learning is up to 15 times faster, and the duration battery is 2 times higher.

(MoneyDJ News authorized reprint of this article; source of first image: Apple)

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