Intel is apparently holding talks with Apple to manufacture A4 and A5 chips according to Glen Yueng, a Citi Analyst who also says that it could be the preamble to a much bigger partnership.
Business Insider reports that this could eventually mean that Apple will ditch its ARM-based chips for Intel's x86 chips for its popular mobile devices; something that SAI reckons, would be a huge blow for ARM.
Yeung thinks that Intel is not interested in being a foundry partner with Apple because there's not enough money to be made in it. Intel, he says, could have the right chips by 2013, which would be just in time for the iPhone 7 and the iPad 4.
That obviously doesn't make sense to us at all. Apple has always been keen to own the whole ecosystem (hardware and software) and is very, very unlikely to share it with a partner as powerful as Intel.
This is why Apple had Project Aquarius years ago, why it purchased two chip designers (Intrinsity and PA Semi) and has a significant investment in Imagination Technologies, which provided the GPU for the A4 and A5 SoC.
Relying on PowerPC technology and its own OS almost caused Apple to go bankrupt more than a decade ago but this business strategy - relying on oneself and being autonomous - has always been part of Apple's DNA.