Demand for Apple’s (AAPL, Financial) smartphones and tablets have been on the steep rise for years. The rising demand has made it difficult for the manufacturers to keep up pace with the supply. There are big names floating the information technology global market. Apple is searching for a new established firm to design the processors for its iPads. The main aim of Apple in using different processors is to be on the leading edge of the latest technology. Most of the chips that are used in personal computers are shipped by Intel (INTC, Financial). This indicates that Intel could play a major role in making chips for Apple as well. Apple is already having processors of Intel in its Macbooks.
Deal between Apple and Intel
An industry source disclosed that there have been frequent conversations between Apple and Intel for the last two years. If Intel manufactures ARM-based chips, a big additional incentive would be required. The shipping of processors by Intel could be enough for the deal to happen. Intel, however, has entered into the business by designing chips for a small section in the semiconductor market. According to a RBC analyst, Apple may be thinking about a deal with Intel where Intel would design ARM-based chips for Apple’s smartphones and iPads. Apple would use X86 processors designed by Intel in iPads. Intel is the top choice as the increasing demand for iPads is outstripping the capability of Apple to keep up with the supply.
“Apple has invested in designing its own chips based on ARM architecture that is boosting its gadgets” - earlier there were rumors that Apple is planning to build its own chips, instead of buying processors from Intel. Apple will start putting its feet into its own Mac chips in a few years. There have been famous speculations that Apple will start making chips for its iPads also on ARM-based architecture. According to some sources, some of the chips powered by Intel were coming behind the schedule that could be one of the reasons for the rising rumors. But, these rumors are diminishing as the relationship between Apple and Intel picked up strength with the recent launch of Intel powered Apple MacBooks.
Apple, which relied on Samsung (SSNLF, Financial) for various other components also, but in the wake of rising competition and higher demands Apple has decided to seek technical liaison with multiple vendors. There have been a number of competitors in the market. One such firm is Taiwan Semiconductor Manufacturing Company (TSM, Financial) that was viewed as one of the choices for liaison with Apple. But, Intel snatched the position among others owing to its various positive factors such as space, capability of meeting deadlines, durability, and so on.
Conclusion
In the face of rising rumors, let us look into the actual side of the stuff. In the recent interview, Intel’s CFO Stacy Smith swiped the concerns heading most of the technologists. According to Smith, Intel is unbeaten when you talk about processors for the iPads or smartphones. Apple has no option except to use Intel chips. Stacy threw light over the relationship factor stating that Apple is a one of the great partners of Intel. Intel and Apple have been successful in bringing cool products in the market. Intel continues to be the leading giant in this sector. Thus, Stacy indicated that Apple has no choice, but to use Intel chips so as to mitigate the risk of losing customers due to lower than expected performance levels in the upcoming iPads. Brian Krzanich, Intel chief executive, also put forth his words that the two big names are coming closer with time.
