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Apple Hedges its Bets

by Chris Remo, Aug 30, 2005 2:08pm PDT

In June of this year, Apple Computer announced its plans to switch its products over to Intel processors, causing mixed reactions among both fans and detractors of Apple. The company indicated its intent to start using Intel chips in 2006, with the transition complete by 2007. Now, numerous news sources are reporting that Apple has extended its purchase agreement with processor manufacturer Freescale Semiconductor, Inc. until at least December 31, 2008, well after the completion of Apple's planned switch. The move seems more than anything to be a case of Apple playing it safe and giving itself some freedom to keep non-Intel products in the pipeline while evaluating the company's strategy.

"On August 22, 2005, Apple Computer, Inc. ("Apple") and Freescale Semiconductor, Inc. ("Freescale") entered into a Purchase Agreement. Under the terms of the agreement, subject to certain conditions, Freescale is obligated to supply its microprocessors for orders placed by Apple through December 31, 2008. Apple is under no obligation to purchase Freescale microprocessors other than work in progress that was in place at the time the agreement was executed."
Freescale currently manufactures the G4 chips used in Apple's laptops and Mac mini computers. "We will continue to meet Apple's needs throughout the transition process," said Freescale's Glaston Ford.




Comments

14 Threads | 46 Comments






  • I run a mac laptop for graphic design work, along with my PC/Linux desktop, so these are things I follow... If this were for G5s it would matter, but G4s are at the end of their useful life anyway. As others have said, this is for support, so they have a supply to build replacement mac minis and powerbooks/ibooks out of.. If they enter into this kind of an agreement with IBM for the G5, then it's at least worth making some baseless claims off of. As is, this is just stupid.

    Plus, note the wording. They're required to purchase nothing. Oh and no offense Remo, keep the console goodness coming (but BIGGER INTROS, stat! quit your slacking! :D )

  • What on earth is there to hedge? Does anyone really think Apple's going to have less luck with Pentiums than with PowerPCs? There was a great post at Slashdot (of all places) regarding the switch that I think hit the nail on the head:

    "There's an extremely viable benefit to consumers: Apple will still be relevant in three years.

    Why do you think Apple is doing this? It's not for shits and giggles. Those mobile G5s everyone's been waiting for, the ones that were going to save Apple's portable line from irrelevancy? It should be pretty obvious at this point that IBM has told Apple they aren't coming. Freescale dropped the ball, the G4 line is miles behind the times and Freescale lacks the ability to bring it up to date.

    'Consumers don't benefit'? Bullshit. Consumers benefit because this is the only way Apple can keep their portables competitive. Laptops are the fastest growing segment of the market place, and Apple finally hitting 2 Ghz with a G4 and its you've-got-to-be-shitting-me slow bus sometime next year wasn't going to cut it. Laptop sales fall, software makers lose interest, Apple fails, Apple's customers lose.

    I'd rather they bet it all on a transition to keep the company relevant, rather than keep Freescale's incompetency and IBM's disinterest in laptop-suitable engineering as an anchor to hold them back in the market place until sheer inevitability kills the platform. "