Will Intel Help Apple Finally Ditch Samsung?


Chip giant Intel badly needs to find a new growth driver, as it attempts to diversify its business away from the struggling PC market. And in that vein, Intel recently announced a deal that could do just that. However, if true, Intel's deal could have far-ranging ripple effects through tech, specifically in the growing rivalry between Apple and Samsung.

Source: Intel.

Intel's chip fabrication capabilities are among the best out there. It's long been speculated that Intel could attract substantial new business by building advanced chips for third-party names like Apple with its own foundries. This would be a historic move for Intel, which, in assisting names like Apple, would be in a way helping its rival ARM Holdings also expand its presence as the dominant name in mobile semiconductors.

That aside, Intel's possible move would be a boon for Apple in particular. Apple is currently the single largest purchaser of electrical components from Samsung. Apple pays Samsung $5 billion alone to simply construct its A-series chips. However as tech and telecom analyst Andrew Tonner discusses in the following video, Intel's potential opening of its foundries to new business could help Apple ditch Samsung once and for all.

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The article Will Intel Help Apple Finally Ditch Samsung? originally appeared on Fool.com.

Fool contributor Andrew Tonner owns shares of Apple. Follow Andrew and all his writing on Twitter at @AndrewTonner. The Motley Fool recommends and owns shares of Apple and Intel. Try any of our Foolish newsletter services free for 30 days. We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

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