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

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Apr 12, 2001
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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.
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.
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
 

JaySoul

macrumors 68030
Jan 30, 2008
2,627
2,859
I thought Intel aren't very good at making mobile chips just yet?
 
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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.
 
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Bubba Satori

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Feb 15, 2008
4,726
3,753
B'ham
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.

Yes.

Why?

Because they can.
 
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ozziegn

macrumors 65816
Aug 16, 2007
1,119
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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.
 
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Kaibelf

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Apr 29, 2009
2,445
7,436
Silicon Valley, CA
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.

And yet the suppliers don't complain about the enormous windfall and financial stability! I guess they don't share your faux outrage....
 
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Mystic386

macrumors regular
Nov 18, 2011
162
39
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.

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

macrumors 68020
Oct 25, 2009
2,203
171
Oh man this is exciting. Lose the Samsung dependency! :)

EDIT: Does this mean OSX bootable iPads perhaps?!
 
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Knitecrow

macrumors newbie
Nov 2, 2011
4
0
excess capacity

Fabs have very high capital costs; it makes sense for Intel to utilize excess capacity.
 
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Mystic386

macrumors regular
Nov 18, 2011
162
39
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.

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".
 
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azentropy

macrumors 68030
Jul 19, 2002
2,534
1,762
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.
 
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Jsameds

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Apr 22, 2008
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My inner fanboy is thinking "The less money that goes to Samsung the better".
 
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Yelmurc

macrumors regular
Apr 16, 2008
219
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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.
 
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Consultant

macrumors G5
Jun 27, 2007
13,310
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If I were Apple I probably won't rely on Intel for the long term, with the whole Ultrabook knockoff situation.
 
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ozziegn

macrumors 65816
Aug 16, 2007
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285
Central FL Area
And yet the suppliers don't complain about the enormous windfall and financial stability! I guess they don't share your faux outrage....

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:
 
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Tankmaze

macrumors 68000
Mar 7, 2012
1,682
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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!
 
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drorpheus

macrumors regular
Nov 20, 2010
160
0
Would they still be using ARM architecture designs?

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.
 
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Squilly

macrumors 68020
Nov 17, 2012
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PA
Fate of Samsung. Apple becomes partner and sues when Intel takes a leap.
 
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OasisNYK

macrumors 6502
Nov 29, 2004
381
81
Oh man this is exciting. Lose the Samsung dependency! :)

EDIT: Does this mean OSX bootable iPads perhaps?!

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.
 
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ggf

macrumors member
May 24, 2008
61
4
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
 
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