PA Semi

The main thing holding the iPhone back right now is its under-powered ARM processors, according to Intel. Pankaj Kedia, Director of Ecosystems in the ultra-mobility group of the company, commented at the Intel Developer Forum in Taiwan yesterday that the iPhone's processors aren't powerful enough for intensive apps, and are holding back the cellphone industry.

Apple caused quite a stir when they purchased PA Semi, one of Intel's leading rivals, causing many to wonder if they were ditching Mac chipmaker Intel once and for all. It wasn't until Steve announced that they were going to design their own iPod and iPhone chips that their intentions became clear. Now one Apple employee has offered a small morsel of info on what they're doing.

ARM released a financial report recently in which they announced that they have signed a deal with an "un-named OEM" (original equipment manufacturer) for an architectural licensing deal. This particular kind of license gives the OEM the authority to develop thier own implementations of ARM cores and add custom extentions. They have not stated who the OEM is, but EETimes' Peter Clarke suspects that it's Apple.