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WSJ: Apple moving into chip design

Papermaster. Drebin. Koduri. A law firm specializing in intellectual property? The backcourt starters for the Toronto Raptors? Three key graphics-chip experts now all on the Apple payroll? If you had option C on your answer card, congratulations: now you get to join the WSJ and Forbes in reading the tea leaves about what Apple's dream team of silicon-savvy engineering talent will be building in the secure labs deep in the dwarven mines under 1 Infinite Loop.

Apple's body-snatching spree, particularly focused on veterans of the GPU team at processor maker AMD, aligns with the purchase of PA Semi last year in expanding the company's hardware design capabilities. While there's no Apple product yet on the market featuring chips designed by the new squadron, the expectation is that future iPhones and mobile devices will benefit from Apple-only silicon; graphics capabilities built into these new and exclusive chips would be, presumably, unmatchable by competitors in the mobile space.

The WSJ notes that over 100 LinkedIn profiles for chip engineers who recently worked at Samsung, Intel or other hardware companies now indicate they are sporting Apple employee badges (yay for transparency!). With the current economic climate triggering layoffs and shrinkage at many high-tech enterprises, Apple's combination of marketplace strength and Scrooge McDuck-esque giant pile of cash is allowing it to build a brain trust in hardware that rivals its legendary software expertise.

What kind of super iPhone or magic Mac do you think will be built around these chips and this team?

Papermaster. Drebin. Koduri. A law firm specializing in intellectual property? The backcourt starters for the Toronto Raptors? Three key...
 

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Tom

What Mac does well: software, in particular elegant interfaces, interoperability.
What Mac makes money on: hardware, content distribution.
The writing on the wall: Other people do hardware and distribution just as well as they do.
The solution: Softare that only runs on proprietary hardware. A Mac-only GPU seems like a way to accomplish that. That and closed-platform devices like cell phones or the legendary set-top box.

I'm not sure they're trying for an entire GPU, since that will not only be expensive, but potentially limitting down the road. My guess is that all they want is a chipset that they can pretend is offering "unique capabilities" but is really just tying down the software.

May 03 2009 at 12:01 PM Report abuse rate up rate down Reply
SerranoSlim

Apple's track record when it has a big pile of cash is to fritter it on developing technologies in-house that could be leveraged from industry sources. Remember Pink? Copeland (an OS that Apple spent billions developing)? PowerPC?

This is not a good sign. If Steve Jobs was healthy enough to be involved he'd be firing the people they're hiring.

May 01 2009 at 4:35 PM Report abuse rate up rate down Reply
ianlive

In bad taste dude. Don't spam this site.

April 30 2009 at 7:46 PM Report abuse rate up rate down Reply
Jack Chance

Does this move really make sense? It seems that between intel, nvidia, arm, and via, there is enough competition in the chip market to drive prices and innovation. Moving to intel did wonders for Apple. Nvidia has already demonstrated that they can do low power 1080p with the tegra. I suppose that Apple might be pushing for wifi/bluetooth/video/gsm on a single chip.

That would be pretty kick ass, actually. And if you are selling millions of iPhones, i suppose it could be worth the investment to own all the hardware and IP that goes into it.

April 30 2009 at 3:40 PM Report abuse rate up rate down Reply
andrewsyage

You guys aren't seeing the picture. If you learn anything from Apple, it is to read in "between the lines", when they are hiring.

They are creating a VIDEO GAME console.

They know that video games have been a huge hit with the iPhone and with their on-demand iTunes/Apple TV delivery system, they have been able to "test-out" the infrastructure enough to know that it works.

My 2-cents, and I confident about this one.

April 30 2009 at 10:42 AM Report abuse rate up rate down Reply
1 reply to andrewsyage's comment
Andrew

No way.

Apple would never venture in to that minefield. Microsoft has spent billions just to get their foot in. It is not a good business case and I do not see a short-term ROI if ever.

The Xbox secures Microsofts Windows business division, and locks gamers and developers to DirectX.

What I think Apple sees is that casual gaming works. On the iPhone and other similar devices. They do not need to recreate DirectX or Games for Windows.

They do not need extreme graphics or "huge" titles with hype and gigabytes of textures.

Like you said the distribution is the key to success for Apple. They just need to continue to support the developers, and possibly extend the App Store to Mac OS in general (and other future Apple devices).

They will never, ever make use of the Apple TV platform for anything.

May 02 2009 at 1:26 PM Report abuse rate up rate down Reply
Mike

HD everywhere, using very low power system on chips. Also - don't forget, the ability to use GPUs for regular processing in Snow Leopard on - this will be baked in to every Apple product down the road. Low power, high performance- that will give Apple a huge advantage in the market.

April 30 2009 at 6:31 AM Report abuse rate up rate down Reply
wilfredmoraes

Microsoft it's time u guys take the apple way or the highway

April 30 2009 at 6:20 AM Report abuse rate up rate down Reply
richard

Apple has been involved in chip design for a very, very long time.

April 30 2009 at 4:52 AM Report abuse rate up rate down Reply
FightTheFuture

Apple is putting together this dream team to do with portable computing what they did with portable mp3 players. separating themselves from the low-spec netbook trend on the PC front.

though i don't think this will change macs at all - apple gained a ton of market share and compatibility by going the intel route and allowing to boot and virtualize windows. i doubt they would ditch intel & nvidia hardware in their conventional systems.

April 30 2009 at 2:42 AM Report abuse rate up rate down Reply
Rob

The future is touch interface... Apple have already mastered it and will now excel in the hardware side...
Apple have the lead already and this talent transition is just spinning up the FTL [faster than

The first gen. touch interface products are here, iPhone and iPod Touch, second gen.
is MacBook Touch is almost upon us...

Third gen. is what these guys will be dreaming up for us... a wireless touch interface IT community..
:-)

April 30 2009 at 12:54 AM Report abuse rate up rate down Reply
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