Apple to put Intel chips in the next iPhone and iPad

Apple and Intel

Apple and Samsung have been fighting over each others patents for some time now and in different places of the world. And since Apple buys most of the components for its iPhone and iPad from Samsung, it has been working on relationships with other manufacturers and suppliers to reduce the dependency on Samsung. It has already had business with Sharp and LG for its display unit needs. And next is the processor used in its post PC products. And the Cupertino based tech giant has been working with Intel for this.

It is being told that the negotiations between these two companies has been going on for about a year now, and they do not seem to reached a mutually beneficial agreement. The Cupertino based iPhone maker wants to use Intel’s chips in its products to make them more powerful. Intel has been the leading manufacturer of chips for desktop and laptop computers for years now. But since the computer industry is taking a dive in the recent times, its manufacturing units are not manufacturing chips to their full capacity. So the company has shifted its focus to mobile processors.

It has released a line of processors for smart phones and tablets, but the reception of these chips by the industry has been so good, or as Intel expected. But it may change anytime now. And since Microsoft has built the line Surface tablets which run on Intel’s processors, there may be some momentum. Yet, there is no definite decision for the Apple Intel agreement.

Current Intel CEO Paul Otellini is planning on retiring from his job this May, so that makes this whole deal a bit more uncertain. Apple would not be willing to pay more than what it already does to Samsung for its chips. And Intel might not be willing to slash its 60% margin for Apple. So this particular negotiation could go on for some more time.

Source: Cell Phones CA

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