Apple’s biggest chip gamble yet

With its star having dimmed in Apple Inc.’s firmament, the Mac might seem safe for the company to shake up. But there is still some risk to messing with a 36-year-old business.

Apple on Tuesday announced its first Mac computers running on the company’s own central processor. That chip, dubbed the M1, will replace the processors from Intel Corp. that have powered the Mac lineup since 2006. It will start in the company’s smallest laptops—the MacBook Air and 13-inch MacBook Pro—as well as the Mac Mini, all of which begin shipping next week.

Apple expects to transition its full lineup of Macs to its in-house processors over the next two years. Going in-house with a key component should give a boost to the company’s profit margins. Matthew Cabral of Credit Suisse estimates a 1.5% potential uplift to per-share earnings once the entire Mac lineup has made the switch.