Intel said “no” to powering first iPhone

Apple Intel

Many have wondered over the last six generations why Intel isn’t the chipmaker behind the iPhone’s processor. Up until now there was no solid reason, but today, the CEO of Intel stepped down and let us in on a little secret. The company told Apple “no.” While it is hard to believe now, Intel turned down Steve Jobs and Apple when asked to power the iPhone.

At the time of the original iPhone, it was an unsure future for the device, and no one was exactly sure what type of sales to expect out of the phone which is now seen as one of the most important devices. Paul Otellini, former CEO of Intel, gave an interview to The Atlantic, and had this to say about the decision to now power the iPhone:

“We ended up not winning it or passing on it, depending on how you want to view it. And the world would have been a lot different if we’d done it,” Otellini told me in a two-hour conversation during his last month at Intel. “The thing you have to remember is that this was before the iPhone was introduced and no one knew what the iPhone would do… At the end of the day, there was a chip that they were interested in that they wanted to pay a certain price for and not a nickel more and that price was below our forecasted cost. I couldn’t see it. It wasn’t one of these things you can make up on volume. And in hindsight, the forecasted cost was wrong and the volume was 100x what anyone thought.”

While it would have been a gamble, it is safe to say that the iPhone would’ve given Intel lots of positive press and would’ve helped the reputation of the company if it were able to still produce processors for the phone.

Source: The Atlantic

Via: Cult of Mac

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