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.

Top Rated Comments

gugy Avatar
7 weeks 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
7 weeks 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
7 weeks ago

Hoping iPhones and iPads inhouse chips are next.
Have I got a surprise for you...
Score: 22 Votes (Like | Disagree)
magicschoolbus Avatar
7 weeks ago
Fire up that 5g modem division Cook.
Score: 21 Votes (Like | Disagree)
TheYayAreaLiving Avatar
7 weeks 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
7 weeks ago
With all the fuss about returning to work, just turn HQ into an automated chip production facility.
Score: 13 Votes (Like | Disagree)

Top Stories

timcooktulane

Apple CEO Tim Cook Makes TIME's List of 100 Most Influential People of 2021

Wednesday September 15, 2021 10:20 am PDT by
Apple CEO Tim Cook is one of the 100 Most Influential People of 2021 according to TIME's newly published rankings. TIME shares an annual list highlighting world leaders, celebrities, tech company executives, authors, musicians, athletes, and more, and this is not the first time Cook has been celebrated. This year's list is broken up into categories that include Icons, Pioneers, Titans,...
tim cook fastco

Today Marks 10 Years Since Tim Cook Became Apple's CEO

Tuesday August 24, 2021 6:24 am PDT by
On this day ten years ago, Steve Jobs resigned as CEO of the company he built and officially named Tim Cook as Apple's new head. Two months later, Steve Jobs passed away and the future of Apple lay solely on the shoulders of Tim Cook. Tim Cook took over Apple at a turbulent time when Jobs was battling pancreatic cancer and the company's future seemed uncertain. Questions were widespread...
intel logo

Intel Plans to Make Chips for Qualcomm in the Future

Monday July 26, 2021 3:17 pm PDT by
Intel today announced that it is teaming up with Qualcomm to manufacture some of Qualcomm's future chips. The chips will be manufactured using Intel's 20A process, which is expected to ramp in 2024. There is no word on which chips Intel will make for Qualcomm, but Qualcomm's Snapdragon chips are used in most Android smartphones. Though the 20A design is expected to be available starting in...
tim cook afr cover interview

Tim Cook Talks Privacy, User Trust, Morning Routine, and More in Financial Review Interview

Friday August 20, 2021 2:07 am PDT by
In a long and extensive interview with the Australian Financial Review, Apple CEO Tim Cook discussed many topics, from Apple's core values on privacy, the importance of user trust, his morning routine, App Store regulation, and more. The interview, conducted in July, is in celebration of the Financial Review's 70th anniversary. Cook begins the interview by sharing his morning routine, noting ...
REC ASA CODE2016 20160601 205816 2745

Elon Musk Reportedly Demanded to Become Apple CEO as Part of Potential Tesla Acquisition [Update: Musk Denies]

Friday July 30, 2021 9:04 am PDT by
Tesla CEO Elon Musk reportedly once demanded that he be made Apple CEO in a brief discussion of a potential acquisition with Apple's current CEO, Tim Cook. The claim comes in a new book titled "Power Play: Tesla, Elon Musk and the Bet of the Century," as reviewed by The Los Angeles Times. According to the book, during a 2016 phone call between Musk and Cook that touched on the possibility of ...
tim cook apple car

Analyst Discusses Apple Car's Key to Success, Says Steve Jobs Would Be Proud of Tim Cook's Legacy

Tuesday August 31, 2021 6:52 am PDT by
In the latest episode of the Apollo Effect podcast series, Morgan Stanley analyst Katy Huberty discussed the potential for a so-called "Apple Car" to disrupt the auto industry through vertical integration of hardware, software, and services. Huberty also praised Apple CEO Tim Cook, noting that the late Steve Jobs would have been proud. A fan-made image of Tim Cook announcing an Apple Car via ...
iphone 13 teal with text

Apple Expecting iPhone and iPad Supply Constraints in September Quarter

Tuesday July 27, 2021 2:34 pm PDT by
During today's earnings call covering the third fiscal quarter of 2021 (second calendar quarter), Apple CFO Luca Maesteri said that Apple is expecting supply constraints to affect the iPhone and the iPad in the coming quarter. "The supply constraints that we've seen in the June quarter will be higher in the September quarter," said Maestri. The constraints will impact iPhone and iPad sales...
google chromebook lifestyle shot

Google Reportedly Developing Own Arm-Based Processors for Chromebooks After Being Inspired by Apple Silicon

Wednesday September 1, 2021 9:36 am PDT by
After unveiling its latest Pixel 6 smartphones with a custom Arm-based Google Tensor chip last month, Google is also developing its own Arm-based processors for future Chromebook laptops and tablets, according to Nikkei Asia. Google plans to roll out its own processors for Chromebooks in around 2023, according to the report. Chromebooks are laptops, tablets, and detachable devices that run...
apple lineup

Several Apple Products Currently Experiencing Delayed Shipping Times

Friday September 10, 2021 2:12 am PDT by
Several Apple products, including recently launched devices, are currently experiencing delayed shipping times, a possible sign that the ongoing chip shortage could be more significantly impacting Apple and its products. During the company's third-quarter earnings call, Apple CEO Tim Cook warned that the chip shortage that has plagued the industry for the last few months would impact iPhone...
tim cook celebrates clean

Tim Cook to Receive $750 Million Worth of Apple's Stock This Week

Thursday August 26, 2021 8:13 am PDT by
Days after celebrating his tenth anniversary at Apple's helm, Tim Cook is poised to receive a whopping $750 million of Apple's stock this week as the final installment of his pay deal with Apple, put in place over a decade ago when he took over the company, Bloomberg reports. The installment will consist of 5 million shares of Apple's stock, equating to be around worth $750 million,...