Will Intel make chips for Apple?

Considerable speculation has been spewing from blogs and Wall Street analysts lately that Intel might make chips for Apple’s iPhone, which seemingly would be a big plus for the Santa Clara semiconductor giant.

Intel is trying to make headway in the smartphone market, and the task would be much easier with a customer as dominant in the mobile-device market as Apple.

When asked about the idea at an analyst conference on Wednesday, Intel’s retiring CEO Paul Otellini was tantalizingly vague, noting, “there’s nothing to say we can’t.”

But in a note this week to his clients, Raymond James analyst Hans Mosesmann scoffed at the idea as  “amusing.'”  Among other concerns, he doubted it would make sense financially for Intel and feared it might merely send the industry a signal that Intel’s traditional chip business “isn’t working.”


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