Forbes reported that Apple has agreed to purchase P.A. Semi a low-power chipmaker for $278 million. The interesting thing about this deal is that P.A. Semi designs chips based on Power architecture, the same architecture that Apple used in its computers before they moved to Intel chips based on X86 architecture. According to Forbes Apple is planning to put the P.A. chips in the iPhone. iPhone presently uses an ARM processor and if Apple was unhappy with ARM processor it could have used chips designed by Intel. Going out a buying a Chip company and making their own chips for iPhone can be a very costly solution. I don’t think Apple bought this company to put their on chip in next generation iPhone, although having low-power chip expert could help Apple design more power efficient handheld devices. We might get some answers about this purchase in today's financial report.