June 14th, 2005
Apple Chose Intel, So Intel can Buy Apple, and finally Scorch Microsoft, and Land Steve Jobs in the CEO Spot at Disney
By Alice Hill
RealTechNews
See if you can follow this one. Robert X. Cringely is a pundit, so take that with a grain of salt. But I’ve been pondering why Steve Jobs trashed the Cell processor and I think he hit it on the head. It’s not about getting built in DRM to appease the studios, it’s about major, twisted, ugly business. So see if you can follow this wild ride (it’s an excerpt):

By Robert X. Cringely
The vaunted Intel roadmap is nice, but no nicer than the AMD roadmap, and nothing that IBM couldn’t have matched. If Apple was willing to consider a processor switch, moving to the Cell Processor would have made much more sense than going to Intel or AMD, so I simply have to conclude that technology has nothing at all to do with this decision. This is simply about business — BIG business.
Another clue comes from HP, where a rumor is going around that HP selling iPods could turn into HP becoming an Apple hardware partner for personal computers, too.
Microsoft comes into this because Intel hates Microsoft. It hasn’t always been that way, but in recent years Microsoft has abused its relationship with Intel and used AMD as a cudgel against Intel. Even worse, from Intel’s standpoint Microsoft doesn’t work hard enough to challenge its hardware. For Intel to keep growing, people have to replace their PCs more often and Microsoft’s bloatware strategy just isn’t making that happen, especially if they keep delaying Longhorn.
Enter Apple. This isn’t a story about Intel gaining another three percent market share at the expense of IBM, it is about Intel taking back control of the desktop from Microsoft. Intel is fed up with Microsoft. Microsoft has no innovation that drives what Intel must have, which is a use for more processing power. And when they did have one with the Xbox, they went elsewhere.
So Intel buys Apple and works with their OEMs to get products out in the market. The OEMs would love to be able to offer a higher margin product with better reliability than Microsoft. Intel/Apple enters the market just as Microsoft announces yet another delay in their next generation OS. By the way, the new Apple OS for the Intel Architecture has a compatibility mode with Windows (I’m just guessing on this one).
This scenario works well for everyone except Microsoft. If Intel was able to own the Mac OS and make it available to all the OEMs, it could break the back of Microsoft. And if they tuned the OS to take advantage of unique features that only Intel had, they would put AMD back in the box, too. Apple could return Intel to its traditional role of being where all the value was in the PC world. And Apple/Intel could easily extend this to the consumer electronics world. How much would it cost Intel to buy Apple? Not much. And if they paid in stock it would cost nothing at all since investors would drive shares through the roof on a huge swell of user enthusiasm.
That’s the story as I see it unfolding. Steve Jobs finally beats Bill Gates. And with the sale of Apple to Intel, Steve accepts the position of CEO of the Pixar/Disney/Sony Media Company.













Lockergnome's Tech News Watch says:
Apple Chose Intel, So Intel can Buy Apple, and finally Scorch Microsoft, and Land Steve Jobs in the CEO Spot at Disney
See if you can follow this one. Robert X. Cringely is a pundit, so take that with a grain of salt. But I’ve been pondering why Steve Jobs trashed the Cell processor and I think he hit it on the head. It’s not about getting built-in DRM to appease the s…
June 14th, 2005 at 1:13 pm
Peter says:
Wouldn’t it be funny if Microsoft pulls an IBM and tries to get everyone onto the XBox 360 and partially succeeds, becoming more of a hardware company. In the meantime, Apple suddenly allows Apple clones to appear and moves to a software-only model?
So Microsoft becomes the next Apple and Apple becomes the next Microsoft, and IBM and Microsoft becomes buddies once more?
It’d be a funny sight to behold for certain.
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