Qualcomm reportedly frightened of Apple innovation

New microprocessor may have long-term consequences for chip-maker

According to an article on the Hubspot website, Apple's iPhone5 has a 64-bit A7 microprocessor that has competitors quaking. Qualcomm provides microprocessors for Android phones that compete against Apple.

Hubspot quotes an alleged Qualcomm insider as saying, "The 64-bit Apple chip hit us in the gut. Not just us, but everyone, really. We were slack-jawed, and stunned, and unprepared."

The alleged insider says Apple's innovation is not so much of a threat now because most current software won't benefit. But it could make a difference in the future.

"A 64-bit processor handles more data in bigger chunks than 32-bit processors, so it can get jobs done faster," says the article.

Personal computers have had 64-bit chips for awhile, but Apple's is the first in a smartphone.

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Maybe Apple is trying to become more vertically integrated like Samsung. Or maybe Apple just wants to use the possibility of vertical integration as a negotiation chip with QCOM.

ImJustABill: Apple likes to stay ahead of competitors. That may explain this. Best, Don Bauder

I wonder if Apple thinks QCOM doesn't have enough competition. Original Equipment Manufacturers (OEMs) hate to have a single source for any critical components.

ImJustABill: Of course OEM manufacturers don't want to rely on a single source. Normally, they have to reveal what percentage of their business goes to how many customers. Best, Don Bauder

So I guess I'm just saying I don't know if Apple really wants to go into the chip-making business or if they just want to make sure QCOM, INTC, BRCM, etc know that they can make chips if they aren't getting what they need at the prices they need from their suppliers.

ImJustABill: Earlier this year, the scuttlebutt was that Apple did not want to rely on its arch-competitor Samsung for some of its chips, and was talking with Intel. Apple wants to have a number of chip suppliers. Best, Don Bauder

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