Intel… NOT Inside?

Although this story falls more under the business side of technology that the truly “geeky” side (unless you’re one of those business geeks who drools over spreadsheets, business models and risk/reward analysis), it is still worth noting.  It looks like Apple has finalized their decision to not use Intel’s line of microprocessors in the next generations of Apple iPhones.

Now here at technewsmadesimple.com, we’ve certainly devoted our fair share of web space to Apple and the launch of their newest gadget, the 3G iPhone.  However, the question becomes – where does Apple go from here?

Back in April, Forbes.com reported that Apple had quietly purchased a small microprocessor company called P. A. Semi for $278M in cash.  The immediate repercussions were felt up and down silicon valley – after Apple’s much publicized decision in 2006 to build their newest generation of Mac systems using Intel processors, it seemed curious that they would not choose to use Intel’s systems in the greatest gadget since the Walkman (damn that thing kicked ass!)

Yesterday’s confirmation from Intel only echoes what much of the tech and business world suspected three months ago, that Apple is beginning once again to internalize their production.  Back in the late 70’s and early 80’s, Apple made the decision not to offer licenses of their operating system for general purchase and use, instead choosing to only allow consumers to buy their OS when they bought an Apple system.

This type of thinking was a brilliant short term strategy; allowing Apple to, for a short while, corner the market on personal computer use in homes, schools and the workplace.

However, the “lock-down” of the Apple software made it very difficult to integrate other software into an Apple system, and eventually the market shifted to a Windows World.  Ironically, it is Mac’s ease of use and software integration that is one of the key selling points of today’s systems – now that developers are able to write software geared towards Mac systems, they are no longer isolated to Apple-only offerings.

The announcement two years ago to begin a partnership with Intel looked like the next logical leap forward for Apple/Mac.  Intel processors are used in a majority of systems in use across the world today; Apple was finally opening the Wonkavator doors to the outside world!

But just as suddenly as the first move, Apple slammed those doors shut to Intel (and presumably to other major chip makers like AMD), choosing once again to build their systems entirely in-house and preserve the air of secrecy that shrouded the company through most of its infancy.

We can only hope this doesn’t lead to a dearth of innovations for the iPhone.  Though if it leads to an eventual worldwide shift to the Google Android phone and its immeasurable uses to make my day easier, I’m all for it.