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April 23, 2008

Apple to Intel: We like you… but we like ourselves more.

Intel may have designed a custom processor for Apple and the Macbook Air, but that apparently isn’t enough.

Apple has agreed to purchase chip manufacturer P.A. Semi for $278 million. P.A. Semi focuses on sophisticated, low-power chips that could be used in future iPhones, iPod touches, etc.

The decision to center the iPhone design around a chip that Apple could own marks a significant strategic choice by Apple Chief Executive Steve Jobs, and is aimed at ensuring Apple can continue to differentiate its flagship phone as a raft of competitors flood the market. According to a source affiliated with the chip company, Jobs and Senior Vice President Tony Fadell led the tiny group of executives who spearheaded the acquisition, which included negotiations that took place in Jobs’ home. [ more on Forbes.com ]

Pretty sweet deal if you ask me, the timing of the annoucement also happens to conencide nicely with Apple earnings call later today.

About the Author:
Aaron Nelsen is the webmaster and senior technology editor. He's a career geek, coffee enthusiast, Apple fanboy, and accomplished barista pimp. They've written 407 articles for Hijinks Inc.

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