Apple Continues To Morph Into The Chocolate Factory. Expect Fewer Gobstopper Leaks.

Mg Siegler

MG Siegler is a general partner at Google Ventures and a columnist for TechCrunch, where he has been writing since 2009. Previously, MG was a general partner at CrunchFund. And before TechCrunch, MG covered various technology beats for VentureBeat. Originally from Ohio, MG attended the University of Michigan in Ann Arbor, MI. He’s previously lived in Los Angeles where he worked... → Learn More

Tuesday, April 27th, 2010

Lost iPhone prototypes aside, most Apple leaks tend to come from partners companies tasked with helping to build something Apple needs for a particular product. After all, Apple can’t do it all, itself. Well, not yet anyway.

A report today in the New York Times confirms earlier rumors that Apple has purchased Austin, Texas-based chip company Intrinsity. And yes, it appears that company is the one largely behind the new A4 chip found inside the iPad. An analyst put the price at $121 million, but again, he’s an analyst, so who knows.

But really, the price doesn’t matter. Apple has over $40 billion in cash in the bank — this purchase was very likely just a small drop in that bucket. More important are the implications of such a move: Apple continues to scoop up talent and extend its ability to do more work in-house. You’ll recall that back in 2008, Apple bought PA Semi, the company it is also believed that Apple used to design another part of the A4 chip (well, the people who didn’t leave anyway). Apple is also rumored to be looking at ARM as a possible acquisition (though ARM has downplayed those rumors). After those three, the only other company Apple relies on for its new chip is thought to be Samsung — and that’s only to manufacture the thing.

Immediately following the iPad announcement, I wrote that the biggest news of the event may not have been the device itself, but rather that Apple was in control of building (or at least designing) the chip that runs it. While right now, this is iPad-only, it seems very likely that this chip (or some variation) will find its way into a future iPhone (maybe even the one coming this Summer). And if you listen to Steve Jobs’ own comment — “Apple is a mobile devices company” — it’s not hard to imagine a day where Apple is in charge of making the chips for its entire line of products.

If that’s the case, and Apple continues to roll-up the necessary pieces to do all the work in-house, Apple HQ may one day be even more like The Chocolate Factory. Products will come out, but you’ll need a Golden Ticket to get in. And Apple can seal off those pesky Everlasting Gobstoppers leaks.

Company: Apple
Website: apple.com
Launch Date: April 1, 1976
IPO: NASDAQ:AAPL

Started by Steve Jobs, Steve Wozniak, and Ronald Wayne, Apple has expanded from computers to consumer electronics over the last 30 years, officially changing their name from Apple Computer, Inc. to Apple, Inc. in January 2007. Among the key offerings from Apple’s product line are: Pro line laptops (MacBook Pro) and desktops (Mac Pro), consumer line laptops (MacBook Air) and desktops (iMac), servers (Xserve), Apple TV, the Mac OS X and Mac OS X Server operating systems, the iPod, the...

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Company: Intrinsity
Website: intrinsity.com
Launch Date: 2008
Funding: $4M

Intrinsity provides the tools, technologies, and expertise to efficiently and predictably produce higher speeds for digital logic for the mobile core. Their proprietary Fast14® technology provides circuit speeds up to and beyond 3 GHz as well as the means to manage speed, power, and area to achieve the optimal solution for customer design targets.

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Product: iPad
Website: apple.com
Company Apple

The Apple iPad, formerly referred to as the Apple Tablet, is a touch-pad tablet computer announced in January 2010, and released in April 2010. It has internet capabilities running on either WiFi or 3G, and offers an optional dock with a full size mechanical keyboard. The iPad is a line of tablet computers designed, developed and marketed by Apple Inc. primarily as a platform for audio-visual media including books, periodicals, movies, music, games, and web content. Its size and...

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