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Is Apple Divorcing Samsung for Intel Chips?

A5 procsessor.jpegIntel may be vying to be Apple’s mobile chip supplier since Apple is in a legal wrangle with Samsung, their current partner for custom silicon.

Piper Jaffray analysts:

We believe Intel is also vying for Apple’s foundry (made-to-order silicon suppliers) business. In addition, it makes strategic sense for both companies. The combination of Apple’s growing demand and market share in smart phones and tablets gives Intel a position in these markets and drives the logic volume Intel needs to stay ahead in manufacturing. Intel’s manufacturing lead gives Apple an additional competitive advantage in these markets and distances it from Asian competitors that are knocking off its products.

Piper Jaffray noted the alliance “would also serve to weaken Samsung who is a significant competitive threat to both companies.”

Intel could catch up in the mobile chip market and it would let Apple make a break away from Samsung, who is not only a supplier, but a competitor with the likes of the Galaxy and Galaxy Tab lines. This would certainly make things easier for Apple since Intel isn’t in the phone and tablet business.

via MarketBeat