he most significant part of Apple’s launch of the iPhone 5S and 5C were not the phones themselves, rather it is the 64 bit A7 processor, which will be the platform that moves the company safely to higher ground while the rest of mobiles commoditizes. While analysts preened for a mass market $300 phone to “save” the ecosystem, Apple headed in a completely different direction that offers revenue growth and increased margins. Contrary to belief, $300 phones are a dead end.
Apple chose a correct direction when it first launched it first iPhone. It focused on the new features and capabilities while downplaying the processor — after all it wasn’t one of Apple’s. However, with the closing of the gap due to Android and the multitude of ARM mobile chip vendors, Apple had to make a move to separate itself not just from the consumer market but from the more profitable corporate sector.
Tim Cook has not announced it publicly but his number one goal is to take over the corporate Wintel business that has driven profits for Microsoft and Intel over these past 30 years. With every new iOS and processor, Apple has been capable of applying pressure to Wintel enterprises with its outstanding product technology and performance, which used to concentrated on PCs and Windows OS.
If as expected, Apple launches the A8 next year as the latest 64 bit processor with features that excel against all, even Intel, in performance and power, then it will have completely taken Intel’s game away while the latter is demoted to selling in the $300 mass market that continues to commoditize.