More Insight on Apple and P.A. Semi

by , 4:05 PM EDT, April 24th, 2008

Just what Apple is up to with the P.A. Semi acquisition is causing heated debate. It's actually the low power technologies that the company has worked on according to Tim Beyers at The Motley Fool on Thursday.

After recapping Apple's earnings and the apparent contradiction concerning the fact that the P.A. Semi designs are related to the PowerPC, Mr. Beyers got to the core of the story.

First, one of the co-founders of P.A. Semi is CEO Dan Dobberpuhl who was a lead designer for Digital Equipment Corporation's (DEC) ultra-fast [RISC] Alpha chip and StrongARM microprocessor.

"See the pattern emerging here?" Mr. Beyers asked. "Apple has a history of investing in low-power chip designs that have paradigm-busting potential. P.A. Semi's team has a history of producing ... low-power chip designs with paradigm-busting potential."

To recap, the author cited the keys:

• Apple has a history of teaming with or funding firms that supply low-power paradigm-busting chips, especially for new products.
• P.A. Semi's team has experience creating efficient processors for handheld devices and set-top boxes.
• PWRficient is a low-power paradigm-busting chip that has won industry acclaim.
• Apple's most rebellious new products are the iPhone smartphone and Apple TV set-top box.

"That Apple would want to control the brains of its newest and most important products -- especially when the iEmpire hasn't settled on a consistent supplier for the guts of the iPod -- is to be expected," Mr. Beyers concluded. "It's logical. And if Apple's ingenuity remains intact, it may also prove to be brilliant."