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Bottom line: By the time Apple finishes transitioning the entire Mac lineup to Apple Silicon -- about 18-20 million Macs are sold yearly worldwide -- the company will have saved billions of dollars in production costs. Users will get better performance and energy efficiency, but not necessarily lower prices of their shiny aluminum computers.
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It's been speculated that by switching to its own M1 SoC, Apple would effectively save money in terms of component costs. Analyst Ming Chi-Kuo previously said the bill of materials could be reduced by 40 to 60 percent when it comes to using Apple Silicon as opposed to using Intel's latest CPUs.
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Sumit Gupta, IBM's vice president of AI strategy, recently made an analysis based on estimated shipments of Macs and M1 chipset's estimated production cost of $40 to $50 per unit. Then he compared that to the estimated cost of an Intel Core i5 dual-core CPU in the MacBook Air, which is anywhere between $175 to $200, as well as the Intel Core i5 quad-core found in the MacBook Pro, which costs anywhere between $225 to $250.
The resulting savings would be $2.5 billion on a year like 2020, when the supply chain took a hit as a result of the pandemic. That's assuming that Gupta's estimates of 5.4 million MacBook Air units and 8.6 million MacBook Pro 13 units align with Apple's internal sales numbers. Based on the component price estimates, Apple has spent around $3.2 billion on Intel processors alone for those 14 million Macs, whereas the same amount of M1 chips would cost $697 million. And that doesn't include Mac minis.
Image credit: itsage/egpu.io
Granted, this is just an estimate, but according to Morgan Stanley analyst Katy Huberty, lower-tier Macs made up 91 percent of all Mac shipments in the past twelve months, which could be part of the reason why Apple transitioned these machines first.
Something we can safely assume for now is that the company won't be making its Macs more affordable, save for the M1 Mac mini, which is now $100 cheaper than the last generation. This was made clear when the company explained the new M1 Macs would come with a familiar design as well as a familiar price tag, even as the new machines can only be configured with either 8 or 16 GB of RAM.
Before you get out your pitchforks, it's important to understand that it may take a while before Apple's higher margins can materialize in a meaningful way. This is because the M1 is manufactured using TSMC's 5 nm process node, which is still relatively immature and possibly prone to yield issues, to say nothing of the EUV tooling costs. Essentially, the M1 could be far more expensive than the $40 to $50 estimate, potentially north of $100.
Back in September, it was revealed that a single 5 nm wafer from TSMC could cost as much as $17,000. This is more than what Apple, AMD, and other companies are paying for a 7 nm wafer carrying the chips used in their latest products. So far, TSMC claims it's getting better yields on the 5 nm process node when compared to 7 nm, but we don't know if that necessarily translates into lower prices when you consider the demand.
It's worth noting that based on early reviews and first impressions, Apple's new M1-based Macs rival previous-gen Intel-based machines that are more expensive and have lesser battery life. This redefines the notion that there are lower end Macs and higher end Macs, since the M1 Macs have been shown to perform surprisingly well against some existing ones costing up to three times more, such as the 16-inch MacBook Pro.
In an interview with Om Malik, Apple software engineering chief Craig Federighi, hardware technologies chief Johny Srouji, and marketing chief Greg Joswiak explained that when it comes to the M1, it's 'not about the gigahertz and megahertz, but about what the customers are getting out of it.'
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Federighi noted 'the specs that are typically bandied about in the industry have stopped being a good predictor of actual task-level performance for a long time. Architecturally, how many streams of 4k or 8k video can you process simultaneously while performing certain effects? That is the question video professionals want an answer to. No spec on the chip is going to answer that question for them.'
Professionals are no doubt curious to see what Apple can do to scale up Apple Silicon for the iMac, MacBook Pro 16, and the Mac Pro. Federighi says 'their day will come. But for now, the systems we’re building are, in every way I can consider, superior to the ones they’ve replaced.'
Masthead credit: iFixit
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Using a virtual private network (VPN), you can get superior levels of privacy and anonymity while browsing the web. If you’re looking for a VPN service with advanced features for your Mac, Hotspot Shield VPN will be a great choice. While the free version comes with limited features, the premium version trumps almost every other competitor.
A well-trusted security software!
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Hotspot Shield is one of the most popular VPN services available in the market. Several key parameters have made it an effective package, thereby encouraging people from around the world to use the service. For starters, Hotspot Shield VPN has a much lower latency than competitors like TunnelBear and ExpressVPN. Additionally, many independent labs have reported that the service has high malicious URL detection rates.
While the free version is a bit slower, the premium version offers great streaming speed. In fact, it has overtaken popular services like Norton Wi-Fi and Avast. With additional features like multiple server connections, compatibility with global servers, and automatic deletion of IP addresses, Hotspot Shield VPN is exactly what you need for your Mac.
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With its easy-to-use design, Hotspot Shield offers a seamless user experience. All you need is a single click to activate VPN connections. In case a server fails, there’s a kill switch to instantly disconnect your Mac from the web. As such, your IP address and other information is never revealed.
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One of the most amazing benefits of Hotspot Shield VPN is that you can use a single account on up to 5 devices. This allows you to access global servers from Mac, iOS, Android, and Windows operating systems. Additionally, the VPN service comes with 24/7 live technical support, which resolves your grievances and issues promptly.
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Where can you run this program?
Hotspot Shield VPN is available for a wide range of operating systems, including macOS, iOS, Android, and Windows. For Mac, it’s recommended to use High Sierra, El Capitan, Sierra, and Yosemite.
Is there a better alternative?
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While Hotspot Shield VPN is a great service, you might want to check out a few alternatives. With its two-layer protection and military-grade encryption, NordVPN allows you to browse blocked services and websites anonymously. Its fast speed enables you to stream all kinds of media without any hassles. NordVPN follows a stringent zero log policy and doesn’t keep track of your activity. There’s just one problem! As compared to Hotspot Shield’s premium version, NordVPN is a bit slower.
Another good choice is IPVanish. With more than 1,000 servers in 60 countries, the service has over 40,000 shared IPs. IPVanish doesn’t impose any data limits, allowing you to browse as much as you want. With 256-bit AES encryption, it keeps your internet connection secure. Additionally, IPVanish doesn’t prohibit you from downloading torrents. The only problem is the unresponsive customer support.
Our take
Developed by AnchorFree, which has worked on several software packages, Hotspot Shield VPN is an excellent choice for your Mac device. Its fast speed, global servers, and the ability to use a single account on multiple devices have made the service quite popular worldwide. It has already been downloaded over 600 million times and leads the pack by a long margin. While the premium version is the better choice, the free one isn’t far behind. You can even choose the 7-day free trial to get used to the service.
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Yes, definitely! While Hotspot Shield VPN is perfect for IT professionals and developers, it’s as useful for individuals looking to browse the web anonymously. In terms of ISP restrictions, the service doesn’t impose any limits and allows you to use a single account on up to 5 devices. With a 45-day money-back guarantee, there are enough reasons to go ahead with the download.
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