iPhone 6 could use Intel chips
Intel and Apple are reportedly in talks. Could this mean we'll see Intel chips in the iPhone 6?
Apple's iPhone 6 could feature Intel chips. According to a recent report from Reuters, Intel's next CEO will likely attempt to push Intel into a shift that could eventually lead to a deal with Apple. That would be a huge move for the chipmaker, as it could actually lay the groundwork it needs to stake a spot in the mobile market.
Historically, Intel has dealt with PC chips, but now that those sales are declining, it will need to focus its efforts elsewhere. Reaching an agreement with Apple in the near future could be exactly the kind of headway the chipmaker needs. As the report points out, Intel has already made the mistake once of underestimating the impact of Apple's iPhone and iPad, and as a result, the company has suffered.
From the report:
Intel said last week it will open up its prized manufacturing technology to make chips designed by fellow chipmaker Altera -- snagging its first sizeable customer in a contract manufacturing, or "foundry", business expected to grow. That has spurred talk of an Apple deal. A source close to one of the companies says Intel and Apple executives have discussed the issue in the past year but no agreement has been reached.
Regarding the potential deal between Apple and Intel, Pat Becker Jr. of Becker Capital Management told Reuters that it's not just Intel that would reap the possible benefits. "If you can have a strategic relationship where you're making chips for one of the largest mobile players, you should definitely consider that. And for Apple, that gets them a big advantage," he said. That advantage would likely mean that Apple could use Intel's leading process technology to create better chips for its iPhone 6 and next-generation iPad.
Many analysts have noted that it's essential for Intel to work with a company like Apple if it wants to remain a top player in the chip business. Without directly mentioning Apple, vice president and GM of Intel custom foundry Sunit Rikhi reportedly told Reuters that his group is "ready to take on a potential large, unidentified mobile customer." Meanwhile, an Intel spokesman said that the two companies are in "constant discussions."