“Apple Computer Inc.’s transition to Intel Corp.’s microprocessors may not happen as fast as expected, as the computer maker on Friday (Aug. 26) reported that it has signed a microprocessor supply agreement with Freescale Semiconductor Inc. that lasts through 2008,” Dylan McGrath reports for EE Times. “According to a document filed by Apple with the U.S. Securities and Exchange Commission, Apple and Freescale entered into a purchase agreement Aug. 22 whereby Freescale is obligated to supply Apple with Power PC microprocessors through 2008. Apple, however, is ‘under no obligation to purchase Freescale microprocessors other than work in progress that was in place at the time the agreement was executed,’ according to the filing.”
Full article here.
Apple’s 8-K filing here.
“It remains to be seen how many orders Apple will make… A Freescale spokesman would not comment on the value of orders Apple has placed this year, or if Apple plans to place more orders under the length of the purchase agreement. Apple declined to comment on the deal. ‘We will continue to meet Apple’s needs throughout the transition process,’ said Freescale spokesman Glaston Ford,” Matt Andrejczak reports for MarketWatch.
MacDailyNews Take: As McGrath speculates in his full article, this agreement could be taken either as a sign that the transition to Intel chips may take longer than expected or just that Apple may wish to have PowerPC processors available in case the Intel transition doesn’t go as smoothly as hoped. Given those two choices, we’d lean towards the latter. Another good possibility is that the deal exists simply to allow Apple to buy chips to repair or replace those used in older PowerPC-based models.
Related MacDailyNews articles:
Apple to use Intel microprocessors beginning in 2006, all Macs to be Intel-based by end of 2007 – June 06, 2005