“If you listen to Intel, the last hold-outs against the x86 instruction set are about to fall — with super-powered Nehalem swarms mopping up the high end of massed Power PC supercomputers, and sneaky little Atoms nibbling away at the ARM embedded market,” Rupert Goodwins reports for ZDNet UK.
“Apple doesn’t listen to Intel much. While everyone’s been assuming that an Atom-powered iPhone was a done deal, and getting used to the idea that MacBooks are just Intel laptops with a different OS, Steve Jobs nipped out the back and bought PA Semi. Which is a small CPU company, led by the bloke who was lead designer on the Alpha and StrongARM chips, and which now makes low-power (like ARM) PowerPC-compatible chips that have comparable performance to Intel’s desktop chips,” Goodwins reports.
“Apple can now make its own processors,” Goodwins reports.
“What happens next? Apple now has a very good CPU design team, together with a license for a very capable architecture. The company thrives on differentiation, something that’s been getting harder and harder to do with Intel. I know everyone’s fixated on that darn iPhone, but for this year at least, PA Semi is a much better fit for other parts of the Apple world, and now Apple can break free of the Intel roadmap that its competitors are marching on,” Goodwins reports.
Full article here.
I see intel stock falling
This is a brilliant move. When Apple introduces it’s new Instant Messaging product and THEN upgrades other wireless devices (Touch, iPhone or others) there will be little that the competition can do.
for a contrasting opinion – see RoughlyDrafted: http://www.roughlydrafted.com/2008/04/24/why-did-apple-buy-pa-semi/
There is no way Apple is walking away from Intel as this article states. This direction has given Apple the ability to run windows and OSX on the same hardware – which is winning them sales. They didn’t move a platform to intel to then switch back.
They will, however, try to differentiate their hardware – possibly to keep Apple hardware lucrative – and to shoot companies like PsyStar in the ass. Apple may decide to integrate a few custom chips onto the intel-designed motherboard – supplemental hardware level CPUs that augment the system in some cool-next-gen Apple way. PsyStar can’t run out to NewEgg to get these chips – disabling their systems, or making them unable to run the best features that you can only get from Apple hardware.
Think about it –
but will they be able to update their chips fast enough to keep up with the other chip makers out there? It’s a dangerous game to make your own processors…
Great…now it will be Apple Core duo
Let the jocularity begin.
So, let’s say all this is true and Apple does put these processors in more than iPhones/iPod Touches and the like (read Macintosh computers); what the hell happens to the ability to run Windoze on Macs? I think losing that ability could once again hurt Apple, not to mention the fact it would be yet another platform change for developers to adjust to.
“Well”, you say, “there could be more to this than meets the eye!” Oh? Really” “Yeah! What if these processors would still be able to run X86 OSes and programs, perhaps even independent of each other, through a new-fangled type of virtualization? And what if I told you Apple and PA Semi have been developing such technology through a secret project for the past year-or-s0. Would you be intrigued?”
Why yes, yes I would!
Well, all that is just speculation of course, but I think this would need to be a reality in order for this type of thing to get traction and not hurt Apple in the long-run. And, oh yeah, lest we forget about all those developers and creating programs for this “New Mac architecture”. It would have to be a no-brainer for them, no real change in how they create Apps using X-Code. Keep building with X86 and PPC (or whatever the new name for it would be) in mind.
Who knows, all speculation. But if they could do this SEAMLESSLY, than I could see it being a HUGE win for Apple (thinking different and all…) but if there is even the littlest of hiccups, that could potentially spell a disastrous outcome.
Eh, just my .02¢.
At less than $300 million Apple was able to deliver pretty powerful, yet inexpensive, “Pay attention to me” message to Intel. I think Apple is enjoying its relationship with Intel, but wants them to develop unique, exclusive product to help differentiate Apple products. Jobs very publicly thanked Intel and gave them credit for working with Apple to develop the chip in the MB Air. No sooner was MB Air announced than Intel turned around and began hawking this new chip to all of Apple’s competitors. I’m wondering if this isn’t Steve Jobs way of telling Intel that Apple expects different treatment, and to not get too comfortable in thinking of Apple as a locked in customer.
Go to Dan Eran Dilger for the reality behind this story: http://www.roughlydrafted.com/2008/04/24/why-did-apple-buy-pa-semi/#more-1780
Apple are not going to start making chips; PA Semi doesnt manufacture chips, they are a design house.
Apple wanted the 150 employees and the design patents.
@Spark
Good insight. That sounds very Jobs-ian to me.
@don’t believe the hype…
you really believe that apple just spent 200+ million so they could thwart a small, run out of their garage, maybe sell 100 computers a year startup?
no. there’s something else going on here.
“. . . and to shoot companies like PsyStar in the ass.”
They hired Dick Cheney?
No, Ampar, you’d have to be a blithering idiot to hire Cheney.
Of course, that didn’t stop 49% of the voters in 2000 and 2004 from doing so.
Apple wants everyone to believe that they purchased PA for their design expertise. While that may be true, I suspect that Apple is looking for the expertise to design some very specific chip sets. I doubt that Apple would try to replace the main CPU on any of its existing products, and it is very unlikely that Apple would buy PA to replace any other chip that is currently in use in their products. It would be logical to assume that the design expertise is for a future product, one that the chip industry doesn’t have an ASIC for.
My guess is that Apple may need to design some custom graphic chips for ‘potential’ products like the ‘3D Display‘ or for the ‘Asteroid’ product (which I still believe is part of the Apple TV product line).
Just my 2¢ worth.
@Sum Jung Gai
(hands him a cup of coffee) – wake up and smell the humor bro.
regarding the Roughly Drafted article listed above. Just read it and it makes a ton of sense. Looks to me like Dan has a great understanding of what’s going on inside SJ’s head.
Did anyone think that maybe Apple is using this acquisition to leverage a better pricing deal from Intel?
Earl of Contrast is right, the engineering staff alone is a reason to buy the company.
Now if they had bought AMD instead, I’d say this is a huge story. They could copy the old Commodore/MOS plan (profit off competitor’s, while you get your CPU’s at cost). Apple could sell AMD/ATI processors, chipsets, and video cards that can run mac regardless of the box maker. Profit coming from competitor’s hardware and software sales would ensure that the Apple box was always competitively priced.
PA Semi designs processors, it doesn’t make them.
I actually think that Apple plans on sending some of these new engineers over to Intel plants to help design chips just for Apple.
Apple never has and never will make their own chips!
And, Sum Jung Gai’s response was humorous, too. He got what Ampar was saying.
WOW, outstanding Point DontBelieveTheHype, that is 100% true. Apple, instead of Axing Intel x86 Architecture (therefore destorying windows compatibility) could instead incorporate these new chips from its chip company, making it harder to get Mac Clones, and making Apple hardware different again. They can also benefit from this, they can use their own chips to make macs faster, add new capabilities, ect.
This is a Huge Step for Apple. And shows their keen business finesse once again.
I don’t know which article is the stupidest, this one or the one about the DoD. Apple is not going to compete with Intel or shut down the DoD…jeez!
Well a WSJ article just quoted Jobs as being happy with INTEL. I’m beginning to think Apple will use their expertise to tweak INTEL chips for them. So that it can yield better performance and differentiate and give Apple products a huge advantage from the rest of the wannabees out there. Features that the iPhone/iPod/Touch can only do and the competition out gunned.
http://blogs.wsj.com/biztech/2008/04/24/jobs-still-hearts-intel/?mod=WSJBlog
“I wouldn’t lose too much sleep over that,” he said. “We’re very happy with Intel.”
I believe this would be a great defense for Apple if legal means can’t stop the possibility of intel based Mac clones. However, this may or may not be the reason for the purchase. Just an observation on my part of current events.
Also by using Power PC based processors in Xserves and network devices, Apple can differentiate itself from Intel based systems that may be used by government agencies. Controlling an important chip used by military installations is a very good move in the sense that now Apple may have a closer relationship with them as a system provider.
This guy is full of shit.
Apple will not ever make its own processors. Ever.
They will use these guys to design co-components to differentiate their products and work with mainstream processors they have successfully now moved over to.
These asshat journalists need to go flip burgers at McDonalds, where those kinds of skills are needed.
What Jobs is reported to have said:
“Jobs said Apple acquired P.A. Semi mainly for its chip designers and suggested it will rely on P.A. Semi’s expertise primarily for portable electronics devices like the iPod and iPhone for which Intel doesn’t currently supply chips (though they would like to). Jobs says Apple has long been involved in custom designing chips for iPhones and iPods and P.A. Semi will help enhance its capacity to do so.”
http://blogs.wsj.com/biztech/2008/04/24/jobs-still-hearts-intel/?mod=WSJBlog