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Apple signs delivery agreement with Freescale

Ever since Apple's announcement of plans to move to Intel processors, there has been much speculation about the relationship between Apple and its G4 processor supplier: Motorola-spinoff Freescale Semiconductor.

New details emerged this week when Apple and Freescale signed a supply agreement, as noted in a regulatory Securities and Exchange Commission filing.

Under the terms of the agreement, subject to certain conditions, Freescale is obligated to supply its microprocessors for orders placed by Apple through December 31, 2008. Apple is under no obligation to purchase Freescale microprocessors other than work in progress that was in place at the time the agreement was executed.


The agreement extends through the end of 2008, even though Apple announced it would deliver Intel Macs beginning mid-2006 and that the transition to Intel would be completed by the end of 2007.

TheStreet speculates that this is a sign of a longer transition timeline. In its own report, Think Secret echoes this possibility but points out that it could just as well be a contingency plan or be intended to allow Apple to buy replacement chips for older models.

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84 months ago


Category: Apple Hardware
Link: Apple ensures G4 supply won't dry up

Posted on MacBytes.com
Approved by Mudbug
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84 months ago
so apple is covering their butts, good job, although i can't say that i want the G4s to stick around any longer than they absolutely have to.
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84 months ago
Freescale is obliged to provide G4 chips untill 31, December 2008 :eek: I hope Apple is just be cautious and not thinking off using the chips until that time.
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84 months ago
What is Freescale's motivation for entering into an agreement like this? What do they get besides liability. Apple doesn't have to buy anything but they have to keep making them if Apple says so.

There must be a good reason I am just missing. :o
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84 months ago
That's my thought too. What's in this for Freescale?
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84 months ago
any business is better than none at all perhaps?
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84 months ago

That's my thought too. What's in this for Freescale?

Who knows...

May have been some talk between the two on some of the current projects in the pipe, and this was a contract signed to avoid litigation for Apple's failure to buy any of those chips.

There is probably an escape clause in it that will allow Apple NOT to buy any chips from Freescale. ie, a Minimum purchase or a payoff clause.

Does two things for Apple, secures a supply just in case Apple needs them in the next couple years, and lets both companies make a clean end to their relationship without a civil suit.
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84 months ago
When i saw that i thought apple bought freescale :o we can only wish
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84 months ago
What is the G4 really know for? Low power embedded systems. Why would apple want chips till 2008? Well for the new i-thing that acts as a media hub for your living room :)



lol
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84 months ago
I wonder if Apple is going to make a similar agreement with IBM for G5 (PPC 970)...?
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