You choose, we deliver
If you are interested in this story, you might be interested in others from The Journal Gazette. Go to www.journalgazette.net/newsletter and pick the subjects you care most about. We'll deliver your customized daily news report at 3 a.m. Fort Wayne time, right to your email.

Business

  • Ossian Smoked Meats seeks bankruptcy protection
    FORT WAYNE -- Ossian Smoked Meats Corp. has filed for Chapter 11 bankruptcy with intentions of coming out of the reorganization a more financially stable company, one of its attorneys says.
  • Diamond's Pringles deal ended; Kellogg steps in
    Diamond Foods Inc. and Procter & Gamble Co. have called off their $1.5 billion deal for Diamond to buy the Pringles brand. Cereal maker Kellogg Co. is swooping and made a $2.7 billion deal to purchase the brand.
  • Oil rises above $101 as Middle East tensions rise
    Oil rose above $101 a barrel Wednesday in Asia as escalating tensions in the Middle East outweighed lingering concerns about Greece's ability to implement austerity measures to resolve its debt crisis.
Advertisement

Apple’s chip snubs Intel, Qualcomm

– Apple’s A4 chip, unveiled as part of its iPad, shows how Chief Executive Officer Steve Jobs is extending control over the company’s hardware at the expense of Qualcomm and Intel.

Instead of buying an off-the-shelf part, Jobs had Apple’s engineers design the A4 chip, giving them influence over its cost and functions, said Will Strauss, an analyst at Forward Concepts Co., a researcher in Tempe, Ariz.

“He wants his own ecosystem and doesn’t want to be beholden to anyone,” Strauss said in an interview. “It’s both maximizing his margins and maximizing his control.”

Apple’s decision to design its own part is a blow to Intel, which is trying to win a foothold in mobile devices with its Atom product, said Jim McGregor, an analyst at research firm In-Stat in Scottsdale, Ariz. Apple will probably use a version of the A4 in future models of the iPhone, he said.

“Every step that Apple has taken, from the iPhone to the tablet, has been directly in the sights of Intel, and where it has been wanting to go with Atom,” McGregor said. “Intel has been completely rebuffed.”

The iPad, a touch-screen tablet computer, will go on sale by March, Jobs said at the Jan. 27 debut of the device.

Intel, the world’s largest chipmaker, and Qualcomm, the largest maker of chips for phones, are trying to create a new market for devices that bridge the gap between computers and smart phones.

Goldman Sachs estimates that Apple will sell 6 million iPads this year. By contrast, the market for mobile phones will reach 1 billion units and PC sales will be about 300 million. Still, the iPad is a high-profile attempt to crack a market that Qualcomm and Intel have set their sights on, said Jagdish Rebello, an analyst at research firm ISuppli Corp.

“Intel would have wanted to get into this device, Qualcomm would have wanted to get into this device,” Rebello said. He also expects Apple to use the A4 in future models of the iPhone.

“IPad is powered by our own custom silicon,” Jobs said at the iPad’s introduction. “We have an incredible group that does custom silicon at Apple.”

Steve Dowling, an Apple spokesman, said the company wouldn’t comment beyond Jobs’ remarks and information on the company’s Web site. Apple’s Mac computers run on processors made by Intel, whose chips power more than 80 percent of the world’s PCs. The iPhone uses a Samsung Electronics Co.-manufactured processor that was partly designed by Apple engineers, Rebello said.