Intel CEO admits they refused Apple's offer to make first iPhone's processor

[RaduTyrsina]

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In a new interview with Intel’s CEO, Paul Otellini admitted that he had the chance of being part of the iPhone story from the beginning. According to him, the Cupertino tech giant proposed that Intel manufacture the chips for the first smartphone it released. Strangely enough, Intel passed on the opportunity, taking its business elsewhere. The decision was based upon Apple not being willing to pay the price Intel proposed for its chips.

"We ended up not winning it or passing on it, depending on how you want to view it. And the world would have been a lot different if we'd done it.”

That’s basically how the complicated partnership between Samsung and Apple kick started back in those early days. Apple is trying to break the bonds it has created with the Korean competitor now, but at first, the Cupertino tech giant used Samsung ARM system-on-chip design. However, with the advent of the iPhone 5, Apple introduced its homemade ARMv7.

Otellini, who is retiring this week, went on to explain that back then, the iPhone was an obscure brand and Apple had a set budget in mind when chip production was concerned.

“"At the end of the day, there was a chip that they were interested in that they wanted to pay a certain price for and not a nickel more and that price was below our forecasted cost. I couldn't see it. It wasn't one of these things you can make up on volume. And in hindsight, the forecasted cost was wrong and the volume was 100x what anyone thought."

We bet that Otellini regrets his decision now, seeing how popular all the devices branded by Apple have become, but history has been written.

Source: AppleInsider

 

[thewitt]

This is what happens when bean counters run major tech companies and not innovators.