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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
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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.

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.
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)
Apple's acquisition of PA Semi could mean a new generation of power-efficient chips in future iPhones and iPods.
Apple's acquisition of PA Semi could mean a new generation of power-efficient chips in future iPhones and iPods.   (AP Photo/Paul Sakuma, file)
An Apple customer scans iTunes on an iPhone at an Apple Store in Palo Alto, Calif., Monday, April 21, 2008.
An Apple customer scans iTunes on an iPhone at an Apple Store in Palo Alto, Calif., Monday, April 21, 2008.   (AP Photo/Paul Sakuma)
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Steve Jobs • iPhone • Intel • Apple • iPod • computer chip • PA Semi

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