Apple Inc. (NASDAQ:AAPL)’s woes seem to be growing with each passing day. Sales aren’t growing on the expected lines, profits are declining, and the company is facing stiff competition from Android-based smartphone makers. Recently, Exxon Mobil Corporation (NYSE:XOM) overtook it as the world’s most valuable company. Apple Inc. (NASDAQ:AAPL) needs to take some bold moves to regain the confidence of investors.

Apple Intel

So, what could Apple Inc. (NASDAQ:AAPL) possibly do? Jean-Louis Gassée of the Guardian said that the iPhone maker may consider acquiring the world’s largest chip maker Intel Corporation (NASDAQ:INTC). This move will change the technology industry and Cupertino will become the Mecca of technology.

The acquisition, if it happens, will address several concerns. Apple Inc. (NASDAQ:AAPL) badly needs to get away from its half-brother, half-enemy relationship with Samsung Electronics Co., Ltd. (LON:BC94) (KRX:005930). The Korean electronics giants supplier is the main ARM supplier to Apple despite their rivalry.

Intel Corporation (NASDAQ:INTC) is the world’s best silicon manufacturer. They have everything – the production capacity, people and technology to match Apple Inc. (NASDAQ:AAPL)’s needs in the long-term. Though Intel hasn’t been active in the ARM business, that’s mainly because it didn’t want to get into a fiercely competitive and small margin business. It might have infuriated Wall Street. But if the chip maker becomes the semiconductor arm of Apple, fulfilling all its silicon needs, investors wouldn’t mind.

Moreover, Intel Corporation (NASDAQ:INTC)’s growth is flailing as the PC market continue to shrink. Still, the company is doing nothing to enter the ARM business. The company is starving for leadership. Paul Otellini announced in November to retire in May 2013, but still the company hasn’t found a successor. The Santa Clara-based company has a market value of about $117 billion, easily affordable for Apple Inc. (NASDAQ:AAPL).

But if Apple Inc. (NASDAQ:AAPL) decides to acquire Intel Corporation (NASDAQ:INTC)’s it won’t be without challenges. Both giants are disinclined to consider changing their cultures or beliefs, and there will be a lot of legal issues.  And history suggests that merging two large corporations rarely succeeds. Intel has partnerships with Microsoft Corporation (NASDAQ:MSFT), Dell Inc. (NASDAQ:DELL), Hewlett-Packard Company (NYSE:HPQ) and others that compete with Apple in some or the other way. So, there will be a number of legal issues from partners, competitors and the government.

Let’s see what happens. Apple Inc. (NASDAQ:AAPL) shares jumped 2.64 percent today to $428.16 at 11:40 AM EDT.