Sidebar Sidebar
Become a MacRumors Supporter for $50/year with no ads, ability to filter front page stories, and private forums.

Apple and Intel Have Reportedly Discussed Deal for Production of Future iPhone and iPad Chips

MacRumors

MacRumors

macrumors bot
Original poster
Apr 12, 2001
63,544
30,854



a6x.jpg
Reuters reports that Intel's move into contract manufacturing of chips for other companies suggests that Apple could become a future customer with its A-series chips for the iPhone and iPad, potentially reducing its reliance on arch-rival Samsung as a supplier.
A source close to one of the companies says Intel and Apple executives have discussed the issue in the past year but no agreement has been reached.
Click to expand...
Intel has in the past always designed its own computer CPUs, which PC manufacturers like Apple then buy. Intel had previously expressed interest into moving toward some contract or "foundry" manufacturing of chips, although had indicated that it would be most interested in projects based on its existing technology.

But the growing trend away from PC and towards mobile devices continues to threaten Intel's core business, apparently prompting the company to more heavily consider acting as a foundry for distinct chip designs from third-party companies.
Sunit Rikhi, vice president and general manager of Intel custom foundry, told Reuters last week his group is ready to take on a potential large, unidentified mobile customer, although he declined to discuss Apple specifically.

Intel spokesman Chuck Mulloy said the chipmaker is in constant discussions with Apple, which buys its PC chips, but he would not comment on negotiations about a potential foundry relationship. An Apple spokesman declined to comment.
Click to expand...
Pat Becker Jr, of Becker Capital Management, believes the move would make sense for both Intel and Apple. "If you can have a strategic relationship where you're making chips for one of the largest mobile players, you should definitely consider that. And for Apple, that gets them a big advantage."

Article Link: Apple and Intel Have Reportedly Discussed Deal for Production of Future iPhone and iPad Chips
 
Article Link
https://www.macrumors.com/2013/03/07/apple-and-intel-have-reportedly-discussed-deal-for-production-of-future-iphone-and-ipad-chips/
JaySoul

JaySoul

macrumors 68030
Jan 30, 2008
2,629
2,865
I thought Intel aren't very good at making mobile chips just yet?
 
Last edited:
slu

slu

macrumors 68000
Sep 15, 2004
1,636
107
Buffalo
I don't care all that much who makes the chips. I'd like to believe this competition would lead to cheaper chips and cheaper devices, but it is only likely to lead to cheaper chips and fatter margins.
 
Bubba Satori

Bubba Satori

Suspended
Feb 15, 2008
4,726
3,756
B'ham
slu said:
I don't care all that much who makes the chips. I'd like to believe this competition would lead to cheaper chips and cheaper devices, but it is only likely to lead to cheaper chips and fatter margins.
Click to expand...

Yes.

Why?

Because they can.
 
ozziegn

ozziegn

macrumors 65816
Aug 16, 2007
1,294
831
Central FL Area
why would it seem like making any deal between supplier xxxxxx and Apple would be like making a deal with Satan? I say that because this makes me think of how bad Walmart puts the squeeze on all their suppliers.

As much as I love Apple products, it seems like Apple would be the Walmart in this case.
 
Kaibelf

Kaibelf

Suspended
Apr 29, 2009
2,445
7,444
Silicon Valley, CA
ozziegn said:
why would it seem like making any deal between supplier xxxxxx and Apple would be like making a deal with Satan? I say that because this makes me think of how bad Walmart puts the squeeze on all their suppliers.

As much as I love Apple products, it seems like Apple would be the Walmart in this case.
Click to expand...

And yet the suppliers don't complain about the enormous windfall and financial stability! I guess they don't share your faux outrage....
 
M

Mystic386

macrumors regular
Nov 18, 2011
162
40
ozziegn said:
why would it seem like making any deal between supplier xxxxxx and Apple would be like making a deal with Satan? I say that because this makes me think of how bad Walmart puts the squeeze on all their suppliers.

As much as I love Apple products, it seems like Apple would be the Walmart in this case.
Click to expand...

Intel are big boys with a fair bit of business sense. I don't see this as a Walmart thing.
 
XboxMySocks

XboxMySocks

macrumors 68020
Oct 25, 2009
2,230
198
Oh man this is exciting. Lose the Samsung dependency! :)

EDIT: Does this mean OSX bootable iPads perhaps?!
 
Last edited:
K

Knitecrow

macrumors newbie
Nov 2, 2011
5
6
excess capacity

Fabs have very high capital costs; it makes sense for Intel to utilize excess capacity.
 
M

Mystic386

macrumors regular
Nov 18, 2011
162
40
slu said:
I don't care all that much who makes the chips. I'd like to believe this competition would lead to cheaper chips and cheaper devices, but it is only likely to lead to cheaper chips and fatter margins.
Click to expand...

I'm not sure that's true. There are quite a few components in the iProduct. Sometimes some will go down in price and sometimes up. I'd guess it's constantly moving.

I think it does ultimately lead to cheaper prices. The iPad has stayed the same price but got faster and better (as has the iPhone largely). So better value for money. Seems price savings are being passed on. So are they getting fatter margins?

There'll have to be a new Intel sticker though "Intel made chip inside".
 
azentropy

azentropy

macrumors 601
Jul 19, 2002
4,024
5,385
Surprise
Smart move by both parties. I think Intel is seeing the market change and while I'm sure they would like to see it change towards chips they themselves design, they are smart to hedge their bets. Apple is smart to look to source multiple production vendors.
 
Y

Yelmurc

macrumors regular
Apr 16, 2008
219
58
Houston TX
It would be a huge win for Intel. It all depends on if they can deliver the volume Apple needs for the price they demand. I'd also be curious how much capital Apple would be spending to help Intel outfit itself to product ARM processors.
 
Consultant

Consultant

macrumors G5
Jun 27, 2007
13,314
34
If I were Apple I probably won't rely on Intel for the long term, with the whole Ultrabook knockoff situation.
 
ozziegn

ozziegn

macrumors 65816
Aug 16, 2007
1,294
831
Central FL Area
Kaibelf said:
And yet the suppliers don't complain about the enormous windfall and financial stability! I guess they don't share your faux outrage....
Click to expand...

lol - I take it you don't watch much TV, do you? If so, then you might have seen shows on channels like MSNBC where they do episodes on this very same subject. then they interview many of Wally World's suppliers that quite often say how bad Wally World puts the squeeze on their prices. which just about forces the supplier out of business.

so yeah, I can see the logic in your post. :rolleyes:
 
Tankmaze

Tankmaze

macrumors 68000
Mar 7, 2012
1,707
351
its a win win solution I think.

intel needs to be in the game with mobile chip, as they are fairly lacking against arm.

and apple need other vendor than samsung.

Win!
 
D

drorpheus

macrumors regular
Nov 20, 2010
160
1
CJM said:
Would they still be using ARM architecture designs?
Click to expand...

I hope so, x86 has been the slowest and most unproductive arch of the 21st century. Look at how cutting edge intel has been since Apple signed on with them. 3 years and still waiting on something other than menial bumps for the macpro, why because of intel's lack and or desire to raise any bar. although no need to when your a monopoly.
 
O

OasisNYK

macrumors 6502
Nov 29, 2004
460
141
XboxMySocks said:
Oh man this is exciting. Lose the Samsung dependency! :)

EDIT: Does this mean OSX bootable iPads perhaps?!
Click to expand...

You know I am surprised there isn't more of a push for OSX bootable ipads. I see so many professionals with keyboards using the ipad more like a laptop these days. I would think it would be a huge user benefit to be able to run real programs on a tablet - sure it may be a little early but that is where we are headed.

I understand Apples reluctance to do it since it would eat into laptop sales but I think the ipad already is.
 
G

ggf

macrumors member
May 24, 2008
62
5
This has potentially huge upside for Apple and its customers

Intel is currently working at 22nm for Haswell. Samsung is way off the pace - the A6 chips currently in use in the Iphone 5 are made by Samsung using a 32nm process.
If Apple can get Intel to make its A series chips using the 22nm process that is a huge gain in terms of the processing power and energy consumption.
This could result in a significant jump in performance for the iPhone and iPad
 
You must log in or register to reply here.
Register on MacRumors! This sidebar will go away, and you'll see fewer ads.
Top Bottom