Intel to build chips for Apple's ipad and iphone

Intel CEO Paul Otellini has made it clear to investors and reporters that the company will continue to angle for more business from Apple in mobile devices, saying his mission was to "ensure our silicon is so compelling [that] they can't ignore us." Apple CEO Tim Cook said that he predicts that the tablet market will eventually top the PC market. Otellini says that he needs to make Intel's silicon compelling enough by running the iPad better than Apple's chips. Apple's mobile devices are currently powered by Samsung-made ARM based chips.“Apple relies on Intel processors for its notebook and desktop computers, and ARM-based designs for its booming smartphone and tablet products — leading some to fret that Apple could one day switch to ARM-based chips for the Mac. ‘Our job is to insure our silicon is so compelling, in terms off running the Mac better or being a better iPad device, that as they make those decisions they can’t ignore us,’ Intel Chief Executive Paul Otellini said.”
 Intel reportedly inked agreements to supply Motorola and Lenovo with Atom "Medfield" processors for use in upcoming products, and more OEMs are supposedly in line to implement the new chipsets. According to Co-Manager of Intel's Mobile Communications Group Mike Bell, the new manufacturing process used to build the chips is superior to offerings from the competition.While Intel may be an underdog in smartphone processors, Herman Eul, who co-managers Intel’s mobile and communications group with Mike Bell, argued that Intel is already an “incumbent” in the broader wireless semiconductor business, particularly in radio-frequency chips. Since Intel closed its acquisition of German semiconductor manufacturer Infineon’s wireless assets, Intel has shipped 500 million wireless chipsets.

Non-processor Intel chips are also widely used in mobile phones and other devices for wireless radios and other functionality. While it is beginning to find success in mobile markets outside of Apple, Intel would clearly like to be more involved with the market leader, Apple, in future iPad, iPhone and other mobile device products.