APRIL 30, 2009 • The Wall Street Journal reports that Apple Inc. will likely begin designing its own processors for use in future iPods and iPhones. The company is said to be concerned about sharing sensitive details of its upcoming technology with outside chip suppliers that might find its way into microprocessors sold to Apple competitors. Such a move might also allow Apple to create chips more tailored to its products that could generate less heat, and use less energy. An important consideration given the popularity of games on the IPhone.
Impact: Apple used to have a much greater role in the design of its processor technology back when it partnered with Motorola. The company’s advanced software design has allowed it to stay ahead of competitors while employing off-the-shelf hardware at a cost savings. But with the huge transfer of R&D work to Asia in recent years, its getting easier, and quicker, to mimic similar features on similar hardware.