Apple signs delivery agreement with Freescale

[MacBytes]

Apple ensures G4 supply won't dry up




Category: Apple Hardware
Link: Apple ensures G4 supply won't dry up

Posted on MacBytes.com
Approved by Mudbug

 

[PlaceofDis]

so apple is covering their butts, good job, although i can't say that i want the G4s to stick around any longer than they absolutely have to.

 

[DeSnousa]

Freescale is obliged to provide G4 chips untill 31, December 2008 I hope Apple is just be cautious and not thinking off using the chips until that time.

 

[Freg3000]

What is Freescale's motivation for entering into an agreement like this? What do they get besides liability. Apple doesn't have to buy anything but they have to keep making them if Apple says so.

There must be a good reason I am just missing.

 

[Nermal]

That's my thought too. What's in this for Freescale?

 

[PlaceofDis]

any business is better than none at all perhaps?

 

[Sun Baked]

That's my thought too. What's in this for Freescale?

Who knows...

May have been some talk between the two on some of the current projects in the pipe, and this was a contract signed to avoid litigation for Apple's failure to buy any of those chips.

There is probably an escape clause in it that will allow Apple NOT to buy any chips from Freescale. ie, a Minimum purchase or a payoff clause.

Does two things for Apple, secures a supply just in case Apple needs them in the next couple years, and lets both companies make a clean end to their relationship without a civil suit.

 

[mikeyredk]

When i saw that i thought apple bought freescale we can only wish

 

[csubear]

<conspiracy theory>

What is the G4 really know for? Low power embedded systems. Why would apple want chips till 2008? Well for the new i-thing that acts as a media hub for your living room

</conspiracy theory>

lol

 

[avus]

I wonder if Apple is going to make a similar agreement with IBM for G5 (PPC 970)...?

 

[AmigoMac]

I wonder if Apple is going to make a similar agreement with IBM for G5 (PPC 970)...?

Of course, for the PB's .
go back to sleep, got the insomnia from Raven

 

[iMeowbot]

What is Freescale's motivation for entering into an agreement like this? What do they get besides liability. Apple doesn't have to buy anything but they have to keep making them if Apple says so.

Thy do say that they will be buying "work in progress that was in place at the time the agreement was executed", so Freescale do have an assurance that they aren't being stuck with inventory already earmarked for Apple.

I wonder if Apple is going to make a similar agreement with IBM for G5 (PPC 970)...?

They do have an agreement in place with IBM through 20 October 2007.

 

[kalisphoenix]

Hoping this has something to do with a eBook or something. Dammit. Come on Apple, gimme a PDA-thing.

 

[mduser63]

<conspiracy theory>

What is the G4 really know for? Low power embedded systems. Why would apple want chips till 2008? Well for the new i-thing that acts as a media hub for your living room

</conspiracy theory>

lol

Actually, this was one of my first thoughts upon reading this news. Apple may not be planning on using G4s in regular Macs until 2008, but the PowerPC (especially the G4) is a good chip for lower power embedded type applications, and it's a chip that Apple already knows and supports perhaps better than any other.

 

[MacRumors]

Ever since Apple's announcement of plans to move to Intel processors, there has been much speculation about the relationship between Apple and its G4 processor supplier: Motorola-spinoff Freescale Semiconductor.

New details emerged this week when Apple and Freescale signed a supply agreement, as noted in a regulatory Securities and Exchange Commission filing.

Under the terms of the agreement, subject to certain conditions, Freescale is obligated to supply its microprocessors for orders placed by Apple through December 31, 2008. Apple is under no obligation to purchase Freescale microprocessors other than work in progress that was in place at the time the agreement was executed.

The agreement extends through the end of 2008, even though Apple announced it would deliver Intel Macs beginning mid-2006 and that the transition to Intel would be completed by the end of 2007.

TheStreet speculates that this is a sign of a longer transition timeline. In its own report, Think Secret echoes this possibility but points out that it could just as well be a contingency plan or be intended to allow Apple to buy replacement chips for older models.

 

[tsaxer]

I guess it only makes sense, since Apple usually introduces the new, better performing chips on the professional level machines, keeping the step-behind's on the ibook, emac, imac lines.
Oh well, smart business move, Murphy's law and all that...

 

[w_parietti22]

Freescale is obliged to provide G4 chips untill 31, December 2008 I hope Apple is just be cautious and not thinking off using the chips until that time.

I heard that it was so that they could do repairs. Also Appleinsider said this:

However, Apple is "under no obligation to purchase Freescale microprocessors other than work in progress that was in place at the time the agreement was executed," the company said in a regulatory filing.

 

[FunkSpaceMonkey]

Yeah, maybe it's for something other than a PPC..

 

[aptmunich]

Yeah, if you buy a G4 based mac just before the middle of 2006 and buy applecare for it, Apple would still need to have a stockpile of those systems until the middle of 2009.

Guaranteeing a supply of chips until the end of 2008 would ensure that I guess.

I don't think this is anything but Apple covering themselves against disgruntled PPC owners who need replacement chips.

Have you seen the new Intel roadmap? Those are the chips they'll be using for embedded systems.

 

[AmigoMac]

Yeah, if you buy a G4 based mac just before the middle of 2006 and buy applecare for it, Apple would still need to have a stockpile of those systems until the middle of 2009.

If you have a G4 based mac and becomes a lemon, they will give you an Intel, it will be in the purchase contract (read the small letters)
</easy way>

 

[freiheit]

Yeah, if you buy a G4 based mac just before the middle of 2006 and buy applecare for it, Apple would still need to have a stockpile of those systems until the middle of 2009.

I totally agree with this assessment as it makes quite a lot of sense. As to Freescale's reason for getting into it, being that they've not disclosed any information about anything remotely better than a G4 this means they at least do have a customer for their chips if Apple does keep using them for a while.

 

[Kobushi]

Since it's doubtful that apple will release a G5 PB before the switch, but it's likely that they will still upgrade (G4's), they're probably just covering themselves to keep some sort of production going. Aren't Power Books and Power Macs supposed to be last in line for intel chips anyway?

 

[VanNess]

Ahh, Paris...

The Eiffel Tower...The Arc de Triomphe...The Louvre...The Rue de Rivoli...The PowerBook G4 intègre un processeur Dual-Core PowerPC G4...

 

[GFLPraxis]

Before we get any, "G4 is teh suxxors!" comments;

This is most likely for Freescale's e600 G4 processors, the dual core with extremely low power consumption models...

I'd love to see these in the next PB update

 

[gregorydanger]

Kind of interesting, I guess.

This is just a though but ever since the Intel announcement was made and Jobs said the transition would be done by 2007, I figured that although it seems far off for an entire line of computers to make a transition like that it's not really THAT far off and that the completion date could be pushed back to 2008 -- not that Apple signed that with Freescale necessarily because of that but you know how computer companies work.

It'll be interesting to see how things pan out in the next few months.