Apple Snaps Up Chip Design Company

iPhones and iPods could get efficient next-generation chips
By Rob Quinn,  Newser Staff
Posted Apr 24, 2008 6:47 AM CDT
Apple CEO Steve Jobs gestures in front of an image of the new iPhone during a news conference in Cupertino, Calif., in this March 6, 2008, file photo.    (AP Photo/Paul Sakuma)
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(Newser) – Apple has acquired a designer of sophisticated, low-power computer chips, Forbes reports. Analysts say the move will likely lead to a new kind of chip powering future iPhones and iPods, as well as new Apple designs, helping the company differentiate itself from competition scrambling to keep up. The news comes as a blow to chip maker Intel.

Apple's new acquisition, PA Semi, announced a new processing chip last year which it claims is 300% more efficient than its competitors. Insiders say that Steve Jobs now plans to use the firm's chips exclusively in Apple products. The $238 million price tag is high for an Apple acquisition, but won't make much of a dent in the $19 billion cash holdings Apple announced yesterday.