TechCrunch kinda sorta breaks a story:
[emphasis mine]
I keep coming back to a conversation I had a few weeks ago with a veteran Silicon Valley CEO who knew Jobs. This was just after Jobs had resigned as CEO of Apple. We got to talking about why Apple is so well-positioned in the post-PC era, and this executive zeroed in on something you don’t hear too often. “Steve Jobs told me he has 1,000 engineers working on chips,” he said. “Getting low power and smaller is the key to everything.”
The number was startling when I first heard it. I knew that Apple started building its own chip design team in 2009, but figured it had to be a few hundred people at most, not 5 percent of Apple’s non-retail workforce. (Apple employs more than 50,000 people worldwide, 30,000 of them in its retail stores). Apple started designing its own chips because Intel and AMD were still stuck in the PC era. Apple needs chips that are powerful enough, but also very low power.
Battery life is one of the most important features of a mobile device. Apple’s latest A5 processor, which first appeared in the iPad 2, will now power the iPhone 4S as well. Not only is the A5 twice as fast as the A4 in the current iPhone 4, but it slightly improves the battery life with 8 hours of talk time (versus 7 hours).
Not only are Apple’s processors extremely power efficient, but Apple is also removing the hard drives from its products and replacing them with flash memory chips. It’s not just iPhones and iPads, the MacBook Air’s storage is also flash. All of Apple’s products are moving in this direction. When you combine these two fundamental changes at the silicon level, “form factor no longer becomes an issue,” explained the Silicon Valley CEO.
You probably have a few initial thoughts, such as:
- Is this third-party anonymous news complete bullshit? Partial bullshit? Spot on? Well, we don't know. And "working on" could mean a lot of things, even inside Apple. If I approve gaming apps and am given an iPhone 5beta to test them on, am I "working on" the whole chip effort?
- Why would TechCrunch's editor sit on this? No idea. My guess is, he probably went to "journalism" school and is confounded by too many datapoints.
- Fucking cool! High-power, low-power-sucking chips and flash memory and we are running into the post-PC world! I've written many times here that, for Apple, "it's all about the screens". Because, everything else -- everything else -- is fading into the background. Even memory, hard drive and battery.
Now for the bad news...
This may mean what I've long feared. We remain bound by the laws of physics. Those fuckers. Fuel cells, hydrogen powered batteries, alternative power; all that shit that VCs have been spending millions on, maybe billions, hasn't done shit. I can pretty much guarantee you that Apple may or may not have 1,000 people working on chips but they do *not* have 1,000 working on batteries.
No, it's not the end of the world, but it's the equivalent of flying the most badass helicopter there is -- because we can't figure out jet propulsion or can't build a adequate jet engine. It's a significant limitation on our evolution.
Anything else?
Perhaps. Perhaps this reveals the ultimate triumph of the Apple Way? Perhaps this reveals why Microsoft struggles so badly to move into the future. Perhaps this reveals why Google, despite server farms around the world, spent much of its future on a mid-sized US-based electronics company with probably a greater past than future.
You can't build the software without knowing the hardware. Not if you want it insanely great. And in today's world, when we can have insanely great, we do not settle.
Hardware is hard. It's messy, complicated. Almost no one does it well. Almost no one makes money on the hardware. Those that once did, now struggle, such as Dell, or exit the business, such as HP.
Building their castles in the clouds.
If Apple has 1,000 persons working, fully or partly, on chips, odds are terrific that no one will be able to make better software that runs on those chips. Odds are that no one will be able to build software that runs better on *any* chips. Because they simply don't have that skill set. No matter how smart, the work matters, the work teaches.
Licensing may offer scale but doesn't not offer expertise, or perfection.
Some may call Apple's way 'closed' and not like it. They will suggest it is controlling. Mistakenly view it as an obsessive need to 'own the stack'. They miss that it ensures a level of expertise and optimization that no one else can match. But that customers can instantly sense.