Apple's Chip Choice for G5 Computer Signals Stronger Ties with IBM
Posted on: Tuesday, 24 June 2003, 06:00 CDT
Jun. 24--Apple Computer Inc. unveiled its next-generation desktop computer Monday and signaled that its technology ties to IBM Corp. are going to get closer.
The new Power Mac G5 64-bit computer is expected to be available for sale in August at retail prices ranging from $1,999 to $2,999. It is based on an Austin-designed PowerPC 970 processor that is made by IBM at its most advanced chip factory in East Fishkill, N.Y.
It's a blow for Motorola Inc., which will be replaced in production of Apple's highest-end PowerPC processors. The new deal with Apple helps IBM more fully use capacity of its new chip production facilities during a slowdown in the semiconductor business.
Apple claimed Monday that its tests show the G5 will be the "world's fastest (personal) computer" based on its performance benchmarks, even though its gigahertz rating or "clock speed" will be slower than current Intel Corp. processors. The machine will have models operating at 1.6 gigahertz, 1.8 gigahertz and a dual-processor version that runs at 2 gigahertz.
Apple chief executive Steve Jobs said the new chip marks the start of stronger ties to IBM.
"IBM offers the most advanced processor design and manufacturing expertise on Earth, and this is just the beginning of a long and productive relationship," Jobs said in a statement.
Even though the two companies have worked together for more than a decade, John Kelly, senior vice president of IBM's Technology Group, said the new G5 Macintosh is a preview of a "deeper partnership" between the two companies.
The 970 is a simplified version of IBM's Power4 processor, a 64-bit chip that was designed largely in Austin and is the brains for Big Blue's Unix servers and supercomputers.
IBM's gain may be Motorola's loss. Motorola's Austin facility was the sole supplier of the processors that went into Apple's G4 desktop product line. Analysts have said Apple was disappointed with Motorola's ability to rapidly increase the performance of its chips.
But Motorola spokesman Scott Stevens said the company expects to remain an important chip supplier for Apple well into the future.
"Motorola and IBM have shared business at Apple for some years, and we expect that business dynamic to continue," Stevens said.
"Apple is a significant customer, and they will remain so."
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(c) 2003, Austin American-Statesman, Texas. Distributed by Knight Ridder/Tribune Business News.
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