Apple reportedly switching to Intel chips for iPhone/iPad

Apple has reportedly been in talks with Intel regarding manufacturing chips for future devices, with both companies benefitting given Apple's relationship with Samsung and Intel's low impact in the mobile market.

Currently, Apple have contracts with Samsung, with whom they have been engaging in recent legal battles, to produce its mobile processors including both the A6 and A6X found in the iPhone 5 and iPad 4.

It's not the first time Apple and Intel have collaborated

Intel, whilst the world's richest semiconductor company, have only had a small impact in the highly lucrative mobile processor market. Lesser known manufacturers such as ZTE have been among the only companies to take advantage of Intel's new low power chips. During the development of the original iPhone, Apple looked directly to Intel to provide a lower power processor but the company was unsuccessful.

Predictably Intel tells TechRadar that "we don't comment on rumors or speculation", however Reuters reports the two computing giants have been in talks that have thus far proved futile. The report does indeed boost a claim that Intel's custom foundry vice president and general manager Sunit Rikhi has let slip his company is taking on a major mobile customer. However, when questioned by CNET, Rhiki declined to confirm the future customer was Apple.

Falling stock prices

If the talks do ultimately prove successful, however, Intel could be looking at additional revenue of up to $4.2 billion in 2015, judging by a figure 'Macquarie' analyst, Shawn Webster, offered Reuters. 

Intel have seen a 19% fall in its stock over the last year, suffering from a decline in desktop and laptop processor demand. They may even lose the Mac processor contract with Apple, as the secretive company are set to replace current chips with their own designs.

Of course, Apple have seen a similar fate to their stock price among analysts predications of their decline despite record revenues of over $50 billion in Q4 2012. Stock in AAPL has fallen 37% since an all-time high last fall to its lowest since the release of the iPhone, now at $431.72 (at the time of writing), despite Tim Cook's repeated reassurances that the Californian company has "some great stuff" in development.

Source: TechRadarImage: WCCFTech

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