Apple may look to Intel to free itself from Samsung

Allan Swann
March 8, 2013

According to a new report, Intel may be looking at producing chips for other companies, in a bid to gain relevance in the mobile market.

Intel has been mostly absent as tablets and smartphones have taken off as the preferred computing devices for millions around the world.

Most smartphones and tablets run on Britain’s ARM based chipset architecture, which it then licenses out to companies such as NVidia, Samsung, Qualcomm and Apple. ARM’s architecture is uniquely suited to low power operations and portability, which Intel has struggled with. Intel most recently updated its Atom line in an attempt to woo handset manufacturers, but uptake was limited. It has just 1% marketshare, which has also seen its shareprice fall.

Apple in particular is looking for a way to reduce its reliance on Samsung, which builds much of its componentry in Samsung’s foundries, and which Apple sees as a copier of its innovation.

Reuters is reporting that, if the stories are true, this could mean that Apple might move to use Intel to build its chips – keeping much of its production and R&D in the USA.

Negotiations between Apple and Intel about a mobile chip deal are ongoing, Reuters reported, citing ‘people who have knowledge of the talks’.

Apple has said that it is in constant contact with Intel, which of course powers Apple’s laptop lines.

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