Apple is reportedly in talks to source chips from Intel, a potential lifeline for Intel's struggling foundry business amid near-zero net margins. The deal would represent a meaningful revenue catalyst for Intel while testing whether its manufacturing recovery can meet Apple's exacting quality standards.
Intel's near-zero net margin means an Apple foundry contract would be a high-leverage revenue event, and any confirmed volume commitment could drive a sharp re-rating of the turnaround thesis from a deeply depressed base.
Intel's gross margin has already fallen to 34.8% with essentially no net income, and Apple's history of demanding leading-edge yields at scale suggests this deal could be years from production revenue — or never materialize if Intel's process nodes don't qualify.