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Apple and Intel Have Discussed a Deal for iPhone and iPad Chips, Says Report

by Sean P. Aune | March 7, 2013March 7, 2013 8:00 am PDT

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According to a new report, Apple and Intel have once again discussed a potential deal that would see the chipmaker building processors for the iPhone and iPad product lines.

As PC sales continue to contract, Intel is looking to other revenue streams to keep itself moving ahead. Until recently the company only produced its own processor chips, but it recently opened itself up to “foundry” work by producing chips designed by Altera. Intel has said it expects to grow this portion of its business, which has set in motion speculation that the company may be eyeing taking up the processor work for Apple.

Reuters reports that an unnamed source close to either Apple or Intel – it wouldn’t say which – says that the two companies have indeed talked within the past year, but that no deal has been reached as of yet.

Adding fuel to the fire, Sunit Rikhi, vice president and general manager of Intel custom foundry, has said as recently as last week that his department is ready for a potentially large order from an unidentified mobile customer. When questioned, he would not name Apple specifically. Additionally, Chuck Mulloy, an Intel spokesperson, told Reuters that the company is in ongoing talks with Apple, but wouldn’t specify if it related to potential foundry work or the deal for the processoes that power all Mac computers.

Apple, as always, has declined to comment on the situation.

A deal with Intel would make a lot of sense as the two companies already have a working relationship, and anytime you can increase the volume with a particular vendor, that means you can lower your costs. If Intel is ready to work with orders of this size, it seems to be a deal that would make sense for both companies.

Reuters

Sean P. Aune

Sean P. Aune has been a professional technology blogger since July 2007, but his love of tech dates back to at least 1976 when his parents bought...

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