Apple's New Chip: Too Much Fear?

Yes, the Mac maker will face some tech hassles now that Intel's inside. But investor fears that have driven down the stock are likely overblown

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By Olga Kharif

February 15, 2006 at 5:00 AM UTC

This article is for subscribers only.

It's been a rough month for Apple bulls. Jitters over Apple's (AAPL) transition to Intel (INTC) processors has sliced 21% from the stock's value since Jan. 13, with the shares closing at $67.64 on Feb. 14. The thinking was, when a major switch like this occurs, glitches inevitably follow, and some buyers will delay purchases until the kinks can be worked out.

For instance, such key applications as Adobe (ADBE) Photoshop require reworking for the Intel-based systems -- and the new versions might not go on sale until early 2007. In the meantime, Adobe Photoshop runs about 50% slower on the Intel-based iMac than on predecessor iMac G5, says Kevin Krewell, editor-in-chief of the chip-tracker newsletter "Microprocessor Report" (see BW Online, 2/13/06, "It's iMac on Steroids").