Apple Wants To Produce Its Own Chips For iPhone 4G

Apr 19 2010, 3:39pm CDT | by Mark Raby

Right on the heels of the outrageous story of an iPad 4G prototype that someone left in a bar, there is now speculation that Apple is planning to move a key part of its manufacturing processes to an in-house system.

According to a story at The Korea Times, Apple will be funneling more money into research and development at its own plants to process and manufacture the upcoming iPhone's application processor.

That's the biggest part of the device as it contains the meat of what the end user will see. Previously, Apple had contracted overseas divisions of Samsung to work on these kinds of operations.

Now, Apple will use its own technology to have tighter controls on everything. "That's not good news at least for Samsung Electronics' system LSI business," said a "high-ranking industry executive" in the Korea Times story, who like many other people when talking about sensitive Apple issues did not want to be named.

It's not clear how or if this revelation was related to last week's crazy story of someone in California leaving a prototype of the next generation iPhone at a local bar, although Apple made the decision to use its own application processor for the iPhone 4G before this incident.

It's a big move for Apple, as it officially lends its entire technological backbone to the mobile phone business in addition to its existing computer and music player manufacturing.

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Mark Raby
Based in New York City, Mark follows the consumer electronics industry like a hawk. A published book author, he has a particular affinity for 3D technology and video games, and as such will surely be in the market for a new pair of glasses soon. Mark can be contacted directly at mark@i4u.com.