Monday, December 3, 2012

Intel Corporation (NASDAQ:INTC), Apple Inc.(NASDAQ:AAPL) Working On Hitting a Deal

The rising tensions between Apple Inc.(NASDAQ:AAPL) and Samsung and their bitter court battles around the world have led the iPhone to an intolerable situation.

The Korean handset maker builds the chips that are designed by Apple and power its iPhones, iPads and other devices. Apple would like to end this dependence on Samsung.

According to reports Apple is talking to Intel Corporation(NASDAQ:INTC) to build its chips and take over from Samsung.

RBC analyst Doug Freedman says that for a deal to happen between the two companies there has to be some changes. Intel will not be making its own chips but build ARM chips for Apple's range of devices.

That would be a notable move for the chip maker, as Intel has so far only built chips sporting its own x86 architecture. In turn, Apple may have to agree to switch the iPad’s processor to x86 — which would be similar to the move away from PowerPC processors on Apple’s computers, Freedman said.

VentureBeat which followed up the story tried to corroborate the information with an Intel spokesperson, who said that the company doesn’t comment on rumours and speculations.

Intel wouldn’t have thought of making ARM chips even a year back - it would have been tantamount to admitting failure and that its mobile x86 chips were not up the mark.

However a lot has changed in the last one year and with chief executive Paul Otellini retiring next year, it is time for the company to take some bold decisions.

According to Freedman, Apple’s demand for mobile processors could surpass Samsung’s capabilities next year and that Intel also has the “upper-hand” over competing chipmakers like Taiwan Semiconductor (TSMC) and GlobalFoundries

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