Tim Cook on Apple Deciding to Manufacture Components: 'We Ask Ourselves If We Can Do Something Better'

During today's earnings call for the third fiscal quarter of 2021 (second calendar quarter), Apple CEO Tim Cook was asked how Apple decides what components to purchase and what components to develop, and Cook said that Apple asks if it can be done better.

new m1 chip

We ask ourselves if we can do something better. If we can deliver a better product. If we can buy something in the market and it's great and it's as good as what we can do, we're going to buy it. We'll only enter where we have an ability to do something better and therefore make a better product for the user.

Cook went on to explain that the M1 chip is a great example of that. "We have the ability within our silicon team to make a product that's appreciably better than what we could buy," he said.

Response to the ‌M1‌ chip has been "unbelievable," and has been powering Mac and iPad sales that are constrained. "That's how we look at that and whether we should enter a market or not," said Cook.

The ‌M1‌ chip has allowed Apple to cut ties with Intel, and Apple is no longer reliant on Intel technology or Intel release timelines. In the future, Apple is also planning to come out with its own modem chips, reducing its reliance on Qualcomm.

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Top Rated Comments

gugy Avatar
38 months ago
I have to say the decision of manufacturing their own chip is the crown achievement of Tim's leadership. That was a huge move that will pay dividends for Apple and its customers for years to come. Well done!
Score: 31 Votes (Like | Disagree)
ratspg Avatar
38 months ago
So happy Intel is on the way outtttt.

They would take forever to update and enjoy overheating. Apples chips are the future.
Score: 27 Votes (Like | Disagree)
Moonlight Avatar
38 months ago

Hoping iPhones and iPads inhouse chips are next.
Have I got a surprise for you...
Score: 22 Votes (Like | Disagree)
magicschoolbus Avatar
38 months ago
Fire up that 5g modem division Cook.
Score: 21 Votes (Like | Disagree)
TheYayAreaLiving ?️ Avatar
38 months ago
Apple chips are the future of the chip industry. I think Apple has been doing an amazing job when it comes to building in-house chips.

Hoping iPhones and iPads inhouse chips are NEXT!
Score: 14 Votes (Like | Disagree)
carrrrrlos Avatar
38 months ago
With all the fuss about returning to work, just turn HQ into an automated chip production facility.
Score: 13 Votes (Like | Disagree)