Apple May Use Intel Chips For Macs

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Apple May Use Intel Chips for Macs

Mon May 23, 2005 03:48 PM ET

By Duncan Martell

SAN FRANCISCO (Reuters) - Apple Computer Inc. has been in talks that could lead to it using Intel Corp. chips in its Macintosh computers, The Wall Street Journal reported on Monday, reigniting decade-old speculation and sparking a 5 percent rise in Apple's stock price.

The report, citing two industry executives with knowledge of recent discussions between the companies, said Apple was expected to agree to use Intel chips. But it said the talks could break down or could be a tactic to gain negotiating leverage with Apple's current chip supplier, International Business Machines Corp.

At stake for Apple is a more predictable and consistent supply of microprocessors -- the computing engine in computers -- as well as potentially lower prices for Apple Macintosh computers, which historically have cost more than PCs running Microsoft Corp.'s Windows operating systems.

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