iSuppli dissects Apple's first Intel-based iMac
Jan 20, 2006
Apple Computer Inc.'s first desktop PC to be based on an Intel Corp.-manufactured microprocessor carries a Bill of Materials (BOM) cost of $873, according to preliminary data from iSuppli Corp.'s Teardown Analysis Service.
The new Apple iMac desktop PC, introduced by Apple head Steve Jobs at last week's MacWorld Expo, is based on Intel's Core Duo microprocessor. This marks a major departure for Apple, which has never used an Intel-made microprocessor in its PCs, instead opting to employ PowerPC chips made by IBM and Freescale Inc. over the past decade. With the introduction of the new iMac, and the Intel-based MacBook Pro notebook PC, Apple has commenced a planned transition of all its notebook, desktop and server PCs to the Intel architecture.
iSuppli's teardown of the new iMac revealed that Apple also is using Intel's mobile 945 core-logic chipset to support the Core Duo microprocessor. iSuppli estimates the cost of the microprocessor is $265, while the two-device chipset carries a cost of $45. Together, the Intel microprocessor and Mobile 945 chipset account for 35 percent of the new iMac's total BOM, according to Andrew Rassweiler, teardown services manager and senior analyst for iSuppli.
The Intel chips in the iMac are designed for use in notebook PCs, rather than desktops. While this may seem surprising, iSuppli believes Apple's decision to use Intel's notebook-oriented solution in its desktop iMac was a logical move.
"Users want quiet and powerful machines," said Matthew Wilkins, senior analyst for compute platforms research for iSuppli. "Intel is very focused on designing microprocessors that deliver the maximum performance without generating excessive heat or consuming huge amounts of power. For now, the Intel Core Duo fits that bill perfectly."
The development of an Intel-based iMac offers benefits for both Apple and Intel, Wilkins added.
From an Intel perspective, the Core Duo is the company's first dual-core product designed for notebook PCs, and also is part of the company's new Viiv digital entertainment initiative.
From an Apple perspective, the Intel microprocessor allows the company to launch its first dual-core desktop and notebook products, because previously only its high-end PowerMac G5 computers were available with dual-core microprocessors.
Above the $873 BOM, the iMac carries a $25 manufacturing and test cost, adding up to an $898 cost. This cost estimate does not account for other items included in the box with the iMac, including the keyboard, the mouse and documentation. Apple is selling the low-end version of the Intel-based iMac analyzed by iSuppli for a suggested retail price of $1,299.
