Intel Corporation Chief Says It is Growing Closer To Apple, Inc.

Intel Corporation Chief Says It is Growing Closer To Apple, Inc.
By The original uploader was VD64992 at English Wikipedia [Public domain], via Wikimedia Commons

Intel Corporation (NASDAQ:INTC) CEO Brian Krzanich was bombarded with a number of questions during Reddit’s Ask Me Anything session. When a user asked him about the chipmaker’s relationships with Apple Inc. (NASDAQ:AAPL), Krzanich said the two companies are “growing closer” as time progresses. Apple moved its Mac lineup to Intel chips about a decade ago.

Intel hasn’t always had sweet relations with Apple

Krzanich said that Intel Corporation (NASDAQ:INTC) is always committed to building a closer relationship with its partners. Though the Santa Clara-based company is the only chipmaker for Mac, it occasionally ran into a contentious relationship with the iPhone maker. At one point, there were reports that the Cupertino-based company was planning to displace Intel chips with its own processors in Macs.

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Apple Inc. (NASDAQ:AAPL) uses ARM-based chips, instead of Intel Corporation (NASDAQ:INTC)’s processors, in its most popular devices iPhones and iPads. Though Intel had the opportunity to supply chips for the first iPhone, the chipmaker moved away from the deal because making chips for iPhones would have hampered its margins. Then Apple moved to Samsung Electronics Co., Ltd.(ADR) (LON:BC94) (KRX:005930), which still builds almost all the chips used in iPhones and iPads.

Will Intel make chips for iPhones?

But the intense rivalry between Apple Inc. (NASDAQ:AAPL) and the Korean company has fueled speculations that the iPhone maker may consider moving its chip production away from Samsung Electronics Co., Ltd.(ADR) (LON:BC94) (KRX:005930). Intel Corporation (NASDAQ:INTC) partner Altera plans to start producing third-party ARM-based processors later this year. And Intel’s own Atom chips will be competing directly with Qualcomm, Inc.’s Snapdragon and Apple’s A-series. Experts say Intel may begin manufacturing custom ARM processors for Apple.

Krzanich said that vendors sold about 12 million Intel-powered tablets in 2013. The company aims to increase the numbers to 40 million this year. When asked whether he uses any wearable device, Krzanich said he currently wears two such devices to monitor his health and fitness, and one of them has been internally developed by Intel. Krzanich is using the device on a daily basis suggests that the company has an almost-finished wearable device that may hit the markets this year.

Intel Corporation (NASDAQ:INTC) shares skidded 0.20% to $24.45 in pre-market trading Thursday.

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