Apple's push into chips could unnerve suppliers

Fri May 1, 2009 9:07pm BST
 
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* Apple seen designing chips to better control iPhone tech

* Analysts see an application processor within 1-2 years

* Move may hurt suppliers like Samsung, Broadcom, Marvell

By Gabriel Madway and Clare Baldwin

SAN FRANCISCO, April 30 (Reuters) - Apple Inc (AAPL.O) appears to be pushing toward designing its own microchips for the iPhone, a move that would give it greater control but inevitably affect its base of suppliers.

The iPhone now uses chips from a variety of suppliers including Samsung Electronics Co Ltd (005930.KS), Broadcom Corp (BRCM.O), Marvell Technology Inc (MRVL.O), CSR Plc (CSR.L) and Infineon Technologies AG (IFXGn.DE), 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's semiconductor strategy has been apparent for at least a year, analysts say, pointing to its acquisition of microchip company PA Semi and its hiring of experts from chip companies like Advanced Micro Devices Inc (AMD.N).   Continued...

 

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