02 May 09 Apple Planning to Make its Own Chips

In a move that will really allow them to expand possibilities and features for the iPhone and the iPod Touch, Apple is reportedly set to manufacture its own microchips, a strategy shift that the company hopes will create exclusive features for its gadgets and shield Apple’s work from rivals.

The iPhone now uses chips from a variety of suppliers including Samsung Electronics Co Ltd, Broadcom Corp, Marvell Technology Inc, CSR Plc and Infineon Technologies AG, analysts say. If Apple succeeds in coming up with its own chip, it could potentially dislodge at least one of these companies from the iPhone, while sending notice of its intent to take an even bigger role in the creation of its products.

Apple could use the internally developed chips to sharply reduce the power consumption of its hit iPhone and iPod touch devices, and possibly add graphics circuitry to help its hardware play realistic game software and high-definition videos.

(Source) UB News

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Tags: Broadcom, broadcom corp, game software, high definition, infineon technologies ag, iPhone, iPod Touch, marvell technology, microchips, news apple, power consumption, realistic game, rivals, samsung electronics, samsung electronics co, samsung electronics co ltd, technology inc