Apple silicon: Apple designs its own Mac chips, partners build them, and Mac sales rose 12% to $33.7B in fiscal 2025.

What is Apple Silicon?

Apple silicon is a term used to refer to the processor architecture used in the company’s computer chips. Examples include the M1 and M2 processors which are primarily used in the Mac and its various derivatives.

Aspect Β· Explanation

Definition

Apple Silicon refers to Apple Inc.’s custom-designed system-on-chip (SoC) technology used in its Mac computers. It marks a departure from the traditional Intel-based processors that Apple had been using for Macs for over a decade. Apple Silicon is based on ARM architecture and is designed in-house by Apple’s engineering teams. The transition to Apple Silicon represents a significant shift in Mac hardware, allowing for tighter integration between hardware and software, improved performance, energy efficiency, and a seamless user experience across Apple’s ecosystem. The transition began in 2020 with the release of the first Apple Silicon Macs and is part of Apple’s broader strategy to have a unified architecture across its product lineup.

Key Concepts

– Custom Design: Apple Silicon is custom-designed by Apple for its specific hardware and software requirements. – ARM Architecture: It is based on the ARM architecture, which is known for its energy efficiency. – Integration: Apple Silicon enables tighter integration between hardware and macOS software. – Performance: It aims to deliver high-performance while maintaining energy efficiency. – Ecosystem: Part of Apple’s strategy to unify its product ecosystem with a common architecture.

Characteristics

– Custom SoCs: Apple Silicon includes custom-designed System-on-Chip solutions. – Efficiency: It offers energy-efficient performance, extending battery life on portable devices. – Unified Architecture: Aims to create a unified architecture across Apple’s product lineup. – Software Optimization: Apple optimizes macOS and apps for Apple Silicon. – Performance Gains: Promises significant performance improvements over previous Intel-based Macs.

Implications

– Performance Boost: Apple Silicon offers improved performance for Mac computers. – Energy Efficiency: It enhances battery life for portable Macs like MacBook Air and MacBook Pro. – Software Compatibility: Requires developers to optimize their software for the ARM architecture. – Ecosystem Integration: Facilitates seamless integration across Apple devices and services. – Transition Period: Mac users and developers need to adapt to the new architecture during the transition from Intel processors.

Advantages

– Performance: Apple Silicon delivers impressive performance gains. – Energy Efficiency: It extends battery life on portable Macs. – Software Integration: Offers a seamless user experience across Apple devices. – Customization: Apple has control over the design, allowing for better optimization. – Security: It includes security features like the Apple-designed Secure Enclave.

Drawbacks

– Compatibility: Not all software is initially optimized for Apple Silicon, leading to potential compatibility issues. – Transition Period: The transition from Intel processors may take time and require users and developers to adapt. – Limited Upgradability: Some Mac models with Apple Silicon may have limited upgradability compared to previous Intel-based models. – Legacy Software: Users may encounter issues with older, unsupported software. – Developer Effort: Developers need to invest in optimizing their apps for the new architecture.

Applications

– MacBook Air: The MacBook Air was one of the first Macs to feature Apple Silicon. – MacBook Pro: Apple Silicon is also used in the MacBook Pro lineup. – Mac mini: The Mac mini desktop computer utilizes Apple Silicon. – iMac: Apple introduced iMac models with Apple Silicon. – Future Macs: Apple plans to transition its entire Mac product lineup to Apple Silicon.

Use Cases

– Performance Improvements: Users benefit from improved performance and energy efficiency in daily tasks and professional work. – Unified Ecosystem: Apple Silicon enhances the integration of Macs with iPhones, iPads, and other Apple devices. – Software Development: Developers need to optimize their software for Apple Silicon to offer a seamless user experience. – Compatibility: Users may need to ensure compatibility when running older or specialized software. – Long-Term Strategy: Apple’s transition to Apple Silicon is part of its long-term strategy for its product ecosystem.

Understanding Apple silicon

Apple silicon is a catchall term that describes the processor architecture in computer chips that the company manufactures itself. 

Apple turns $109B of quarterly sales into $54.8B of gross profit, much of it from Services. 1 Β· THE MODELSell the device, keep the customermore devices β†’ more servicesAPPLEdevices +servicesCustomersbuy iPhone, Mac, iPadDevelopersApp Store appsSupplierscontract manufacturersPartnerscarriers, resellers.
Apple turns $109B of quarterly sales into $54.8B of gross profit, much of it from Services. Source: Apple fiscal Q3 2026 earnings release (Form 8-K, SEC). Gross profit calculated as net sales minus cost of sales. Analysis by The Business Engineer.

How we source: figures on this page come from the company’s own filings (SEC 10-K, 10-Q and earnings releases, or its annual report), with the period stated next to each number. Last refreshed October 2026. Our methodology.

The first such chip, dubbed the M1, was released in November 2020 as Apple started to reduce its reliance on Intel CPUs.

The M1 chip was installed in the MacBook Air, 13-inch MacBook Pro, Mac Mini, and iMac. 

The M1 Pro and M1 Max were then launched in October 2021 in the MacBook Pro and iPad Pro as a more powerful alternative.

This was followed by the launch of the M1 Ultra for the Mac Studio desktop computer.

The M2 chip was then released in June 2022. Some 18% faster than its predecessors and able to be configured with up to 10 GPU cores, it was initially announced for the MacBook Air and 13-inch MacBook Pro.

Apple silicon chips are part of the ARM architecture family and are similar to the A-series chips found in the iPhone and iPad ranges.

Apple was forced to make the chips for these devices after Intel opted not to produce them for the iPhone, but this may have been a blessing in disguise. 

The A-series chips became the most efficient and powerful mobile chipsets on the market.

The move also equipped Apple with the expertise to make the M2 chips and afforded it more control over the power efficiency and performance of the processor.

How do Apple silicon chips work?

Apple silicon chips are built with a 16-core neural engine and machine learning accelerators that can process up to 15.8 trillion operations per second. The M-series chips are the company’s first “system on a chip” which combines various components such as:

  • Secure Enclave and Touch ID.
  • High-performance DRAM.
  • Unified memory.
  • Thunderbolt controller with USB 4. 
  • High-quality camera processor, and
  • Cryptography acceleration.

What’s more, the ARM architecture offers superior power and thermal efficiency compared to Intel processors.

This explains why the M1 Max is more powerful than most of the laptop processors available today, and why the MacBook Air can be comfortably run without a fan.

Improvements to the M2 chips

The M2 chips are constructed on the second-generation 5nm architecture and feature 20 billion transistors on the processor itself. This is 4 billion more than the M1 series. 

They come with the same 8-CPU cores (four performance, four enhanced efficiency) and 2 additional integrated GPU cores to make 10 in total. Other features include 100GB/S memory bandwidth and as much as 24GB of LPDDR5 memory.

Why is Apple Silicon a strategic asset?

Chips, in the era of AI, have become again a strategic asset.

That is why Apple Silicon plays such a critical role, into the future of Apple’s strategy.

Indeed, the Apple Silicon infrastructure β€” as explored in the economics of AI compute infrastructure β€” will be the foundation for providing advanced features on top of existing devices like Mac computers. But also to provide the capability to Apple to build new, smaller devices, which might become the next business platform.

While, indeed, the new chip infrastructure of Apple is also used in iPhones, thus making them more and more powerful, the interesting aspect is that the whole architecture of Apple is evolving around a neural engine able to manage very complex machine learning tasks.

Apple’s Neural Engine

On June 2022, Apple showed how its neural engine could effectively deploy transformers (the new AI architecture which enabled OpenAI and Stable Diffusion).

Showing how its neural engine could be pretty effective, in handling machine learning tasks, on devices like the iPhone.

apple-neural-engine

Apple and AI

From this perspective, Apple’s devices can be among the most effective in handling AI tasks and enable a business architecture where it’s possible to run in-context learning from these AI devices.

To understand this, listen to what the business architecture of AI might look like.

Key takeaways:

  • Apple silicon is a term used to refer to the processor architecture used in the company’s computer chips. Examples include the M1 and M2 processors which are used in the Mac and its various derivatives.
  • Apple silicon chips are part of the ARM architecture family and are similar to the A-series chips found in the iPhone and iPad ranges. When Intel opted not to produce chips for the company, Apple manufactured them itself and in the process, gained more control over performance and power efficiency.
  • Apple silicon chips are built with a 16-core neural engine and machine learning accelerators that can process up to 15.8 trillion operations per second. The M-series chips feature the company’s first β€œsystem on a chip” with various components.

Apple Silicon Key Highlights:

  • Definition and Introduction: Apple silicon refers to the processor architecture used in Apple’s computer chips, including the M1 and M2 processors. These chips are used in various Mac devices.
  • Transition from Intel: Apple introduced its own processor architecture, starting with the M1 chip, to reduce reliance on Intel CPUs in its computers.
  • Range of Chips: Apple silicon includes chips like M1, M1 Pro, M1 Max, and M2. These chips are used in MacBook Air, MacBook Pro, Mac Mini, iMac, iPad Pro, and other devices.
  • Similar to A-Series: Apple silicon chips are based on the ARM architecture, similar to A-series chips used in iPhones and iPads. This shift provided Apple more control over performance and efficiency.
  • M1 and M2 Features: These chips have a 16-core neural engine, machine learning accelerators, Secure Enclave, Thunderbolt controller, unified memory, and more.
  • ARM Architecture Benefits: Apple silicon’s ARM architecture offers superior power and thermal efficiency compared to Intel processors, enabling fanless designs and improved performance.
  • Advancements in M2: The M2 chips are built on second-gen 5nm architecture, with 20 billion transistors, 8 CPU cores, 10 integrated GPU cores, high memory bandwidth, and LPDDR5 memory.
  • Strategic Asset: Apple Silicon is a strategic asset for Apple’s future, as it forms the foundation for advanced features in existing devices and enables the creation of new, smaller devices. The neural engine and AI capabilities play a significant role.
  • Apple’s Neural Engine: Apple’s neural engine powers complex machine learning tasks and supports AI capabilities on devices like iPhones, contributing to effective AI handling.
How do Apple silicon chips work?
Apple silicon chips are built with a 16-core neural engine and machine learning accelerators that can process up to 15.8 trillion operations per second . The M-series chips are the company's first "system on a chip" which combines various components such as:
Why is Apple Silicon a strategic asset?
Chips, in the era of AI, have become again a strategic asset.
What are the apple's neural engine?
On June 2022, Apple showed how its neural engine could effectively deploy transformers (the new AI architecture which enabled OpenAI and Stable Diffusion ).
What is Apple and AI?
From this perspective, Apple's devices can be among the most effective in handling AI tasks and enable a business architecture where it's possible to run in-context learning from these AI devices.
How do Apple silicon chips work?
Apple silicon chips are built with a 16-core neural engine and machine learning accelerators that can process up to 15.8 trillion operations per second . The M-series chips are the company's first "system on a chip" which combines various components such as:
What are the key components of What is Apple Silicon??
The key components of What is Apple Silicon? include Understanding Apple silicon, How do Apple silicon chips work?, Why is Apple Silicon a strategic asset?, Apple's Neural Engine, Apple and AI. Understanding Apple silicon: Apple silicon is a catchall term that describes the processor architecture in computer chips that the company manufactures itself.
How do Apple silicon chips work?
Apple silicon chips are built with a 16-core neural engine and machine learning accelerators that can process up to 15.8 trillion operations per second . The M-series chips are the company's first "system on a chip" which combines various components such as:
What are the key components of What is Apple Silicon??
The key components of What is Apple Silicon? include Understanding Apple silicon, How do Apple silicon chips work?, Why is Apple Silicon a strategic asset?, Apple's Neural Engine, Apple and AI. Understanding Apple silicon: Apple silicon is a catchall term that describes the processor architecture in computer chips that the company manufactures itself.

Frequently Asked Questions

What is Apple Silicon??
Apple silicon is a term used to refer to the processor architecture used in the company's computer chips. Examples include the M1 and M2 processors which are primarily used in the Mac and its various derivatives. Apple silicon is a catchall term that describes the processor architecture in computer chips that the company manufactures itself.
How do Apple silicon chips work?
Apple silicon chips are built with a 16-core neural engine and machine learning accelerators that can process up to 15.8 trillion operations per second . The M-series chips are the company's first "system on a chip" which combines various components such as:
What are the key components of What is Apple Silicon??
The key components of What is Apple Silicon? include Understanding Apple silicon, How do Apple silicon chips work?, Why is Apple Silicon a strategic asset?, Apple's Neural Engine, Apple and AI. Understanding Apple silicon: Apple silicon is a catchall term that describes the processor architecture in computer chips that the company manufactures itself.

Apple in charts

Apple at a glance: $109B of revenue and $35.7B of operating income in one quarter. Fiscal Q3 2026: three months to 27 June 2026.
Apple at a glance: $109B of revenue and $35.7B of operating income in one quarter. Source: Apple quarterly earnings releases (Form 8-K, SEC EDGAR) (fiscal Q3 2026). YoY calculated. Analysis by The Business Engineer.
Services earned a 76% gross margin in the June 2026 quarter; hardware earned 40%. Gross margin by type, % of net sales, fiscal quarters.
Services earned a 76% gross margin in the June 2026 quarter; hardware earned 40%. Source: Apple quarterly earnings releases (Form 8-K, SEC EDGAR). Gross margin = net sales minus cost of sales, calculated. Analysis by The Business Engineer.
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