Apple Buys Chip Company For $300 Million

In what could only be interpreted as a peek into the future for the iPhone maker, Apple has announced its decision to buy PA Semi, a microprocessor design company for almost $AUD 300 million.

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As usual Apple declined to comment on the reasons or terms of the deal, except to say that it "buys smaller technology companies from time to time," and it does not comment on "purposes and plans."

However analysts note that it is not typical for a company like Apple, to buy hardware firms, particularly as it relies on ready-made components from a variety of manufacturers such as Intel, Samsung and Infineon.

The acquisition has fueled speculation that Apple intends to design custom processors for devices like the iPhone or the iPod, possibly as a means of distinguishing its platform, but potentially in order to retain high margins on the sale of each unit.

It is likely to be at least a year before Apple products with PA Semi chips are released.