Apple and Intel are buds for everything but chipsets for cell phone. So don’t think for a second that Intel won’t take this opportunity to create a more powerful yet still maintain a low power output for the iPhone’s competitors.

It’s still too early to pass judgement on the chip sporting the iPhone because Apple has not announced the maker. As I mentioned above, the first objective for the iPhone chip-killer must be low power in order to help increase battery life. The second objective is to bring down cost per unit; that way more iPhone rivals will have Intel inside.

"Virtually every computer and handset manufacturer is struggling to figure out how they're going to compete with Apple's iPhone," Otellini said. "If we get the power and performance [of the Intel chip] right, it's going to be a killer combination."

"If we get power and price down to the right point, I think it is a killer silicon compilation to these kinds of devices," said Otellini.

[Vincent’s take] If this Intel chip is so great and cost less than what they’re using now, I don’t see why Apple just wouldn’t switch to it for the iPhone 2.0.

Intel plans chip for iPhone rivals [money.cnn.com]