Intel is reportedly in talks with Apple to produce chipsets for the iPhone and iPad.
RBC analyst Doug Freedman says Apple is negotiating with Apple to replace Samsung as the manufacturer of chipsets for its future devices.
He believes that if Intel would build Apple’s ARM-based chips for smartphones, Apple would use Intel’s X86 processors in upcoming devices.
“We believe Intel has the upper-hand due to the limitations of capacity at alternative sources … as the demand is outstripping Apple’s ability to add supply,” Freedman said.
Freedman also estimates Apple’s foundry business could reach $2 billion in 2013.