Intel has long been the world's biggest computer chip manufacturer having both absolute and comparative advantages in the production of high quality chips. Apple has indicated that they will/have begun developing their own computer chips and transition away from using the Intel chips in their products.

Consider the beginning of this process and describe the advantages and disadvantages Apple would have with:

1) Focusing on building up a comparative advantage in chip production

2) Focusing on building up an absolute advantage in chip production

What are the strengths and weaknesses of these strategies? Is there one you prefer?

[Please use your own words and views to answer this essay question in a few sentences, one or two paragraphs. We are not looking for THE right answer - we want to see how you use microeconomics principles to interpret real life issues...]