All Things Digital

Intel’s Core 2 Duo Extreme X9100 is shipping in “limited quantities,” all right. Quantities limited to Apple.

The Apple (AAPL) Web site went offline for a bit this morning, and when it returned it featured a handful of new iMacs, all of them apparently running Intel’s (INTC) as-of-yet unannounced X9100 Montevina processor. Priced between $1,199 and $2,199, the latest iteration of Apple’s iconic all-in-one system features the same enclosure as its predecessors, outfitted with the most powerful graphics cards yet available on the system and Core 2 Duos running at 2.4GHz, 2.66GHz, 2.8GHz and 3.06 GHz. All four have 1066MHz front-side buses and 6MB of L2 cache, configurations curiously absent from Intel’s current price list but expected to debut with Intel’s Montevina refresh.

How is it that Apple’s able to ship machines running unannounced Intel product? Perhaps the company’s designed its product roadmap to dovetail perfectly with Intel’s. Or, perhaps, Apple’s agreement with Intel is another of CEO Steve Jobs’s sweetheart-of-a-deal masterpieces that gives the company early access to Intel’s newest chips.

Apple (AAPL) has finally found a worthy use for the more than $18 billion in cash and short-term securities gathering dust on its balance sheet. The company’s acquiring P.A. Semi for about $278 million in cash.

A boutique semiconductor design company, P.A. Semi specializes in super-low power PowerPC processors. It boasts a rock-star design team littered with Itanium, Opteron and UltraSparc veterans, led by Dan Dobberpuhl, who was among the lead designers on Digital Equipment’s Alpha and StrongARM chips. And in February of 2007, P.A. Semi uncrated its PWRficient 64-bit multicore processors, 2-gigahertz ARM chips that consume just 5 to 13 watts of power, making them 300% more efficient than any comparable chip.

An impressive chip. Question is, what does Apple want with the impressive little chip shop that made it? Perhaps the same thing it was looking for in 2005 when it first approached the company about a supply deal. That agreement never panned out and Apple subsequently signed up with Intel (INTC) and made transition to X86 chips. The switch has gone well. So well, that it seemed almost a foregone conclusion that Intel’s new line of Atom processors would end up in everything from the next generation iPhone to that mythical iTablet, Apple gaming console and next-gen Newton.

But perhaps that’s not the case. Perhaps Atom’s not quite to Apple’s liking? Perhaps, as word on the street has it, it failed to produce the kind of battery life that Apple wants for its ultra-portable designs. Perhaps Apple just wants its own in-house processor design team, one it could use to push its own technical innovations into the market.

Or perhaps P.A. Semi’s working on a new chip so insanely great that Apple CEO Steve Jobs felt compelled to acquire the company? More to follow when Apple reports earnings later today.

In the run-up to Apple’s (AAPL) World Wide Developer’s Conference in June, the Mac faithful are sifting entrails for portents of iPhones to come.

Yesterday the creators of the popular ZiPhone jailbreak discovered in the latest test firmware for iPhone developers a reference to Infineon’s (IFX) SGOLD3H chipset–a chipset that supports 3G wireless broadband of up to 7.2 Mbit/s.

Now “industry sources” cited by TG Daily are claiming that the next-gen iPhone that runs on that chip will debut at WWDC. And there’s more. The device will be slimmer than its predecessor (by about 2.5 mm) and it will be offered in least two configurations at current price points: an 8GB version for $399 and a 16GB $499.

Normally a consumer product announcement at WWDC would seem unlikely. That said, it would make sense for Apple to uncrate a next-gen iPhone at the event this year, given its recent software roadmap and SDK announcement. Wouldn’t it?

Here’s a rather odd hybrid vehicle equally at place in the annals of science and science fiction: a sperm-powered nanoscale robot.

Scientists at Cornell University’s Baker Institute for Animal Health have nearly managed to reproduce (no pun intended) the minute biological engine that powers a sperm’s flagellum. That engine runs on a high-energy molecule called adenosine triphosphate, or ATP, which sperm create via a metabolic process known as glycolysis.

Now, glycolysis requires 10 enzymes attached in the proper sequence to occur in the body. What the Cornell scientists hope to do is make it occur on a tiny gold chip covered with nickel ions. So far, they have attached three of the 10 enzymes to do that. If they’re able to attach the remaining seven, that little gold chip should generate enough ATP to power a nanodevice. Should that occur, their achievement could usher in a new era of smart in-body medical devices that use blood glucose as fuel.

Said Dr. Erkki Ruoslahti, a nanotechnology researcher at the Burnham Institute for Medical Research in La Jolla, Calif., “Having some sort of way of being able to power nanodevices is the No. 1 bottleneck in constructing really clever devices.”

The ban on the export of U.S. computer equipment to Iran hasn’t stopped the Middle Eastern nation from building a supercomputer out of Advanced Micro Devices chips. The Iranian High Performance Computing Research Center claims to have assembled a machine with a theoretical peak performance of 860 gigaflops from 216 AMD Opteron processors.

How did the Iranian computing center get its hands on 216 Opterons when the chips are embargoed from export to Iran? Well, it didn’t get them from AMD. “AMD fully complies with all United States export control laws, and all authorized distributors of AMD products have contractually committed to AMD that they will do the same with respect to their sales and shipments of AMD products,” the company said in a hastily released statement. “Any shipment of AMD products to Iran by any authorized distributor of AMD would be a breach of the specific provisions of their contracts with AMD.”

So, again, how did 216 Opterons find their way into Iran? Via the United Arab Emirates, perhaps? AMD did, after all, receive $622 million in funding from Mubadala Development Co., the investment arm of the Abu Dhabi government.

It’s still 10 to 12 years away from market, but when it arrives IBM’s new silicon photonics technology could transform even the lowliest Dell laptop into a portable Blue Gene.

The so-called Mach-Zehnder electro-optic modulator transmits data between between multiple cores on a chip using pulses of light through silicon, instead of electrical signals on wires. It’s 100 to 1,000 times smaller than previously demonstrated modulators, and it transmits data 100 times faster than traditional copper wires while using 10 times less power.

If IBM’s able to replicate it commercially–and the company insists it can–it could inspire a vast array of new highly portable supercomputers that expend as little energy as a lightbulb. “Just like fiber-optic networks have enabled the rapid expansion of the Internet by enabling users to exchange huge amounts of data from anywhere in the world, IBM’s technology is bringing similar capabilities to the computer chip,” Will Green, IBM’s lead scientist on the project, told Reuters. “You immediately can envision the mobile applications that that would allow you to do. Remote laboratory instruments for medical applications, screening for diseases or even complicated DNA analysis.”

ALEXIS GLICK: “There’s some news coming across the tape right now. We’re seeing from The Wall Street Journal that Apple is buying an 8% stake in AMD.”

PETER BARNES: “The big chip-maker, yup. And AMD and Intel battle back and forth, and so this is a very significant statement by Apple, Charles and Liz, is it not, that it’s going to buy into AMD, pick one of the two?”
[one-year charts of Apple and AMD]

CONTRIBUTOR CHARLES PAYNE: “Well, yeah, and AMD needs, uh–that’s real smart by Apple because AMD is in trouble right now. AMD has always had two problems: either it had a great product that was either sometimes superior to Intel but not the distribution, or it would have a terrible product that obviously they couldn’t compete. And they’re sort of in the middle right now–they haven’t had great product offerings per se recently, the stock has been really just sort of muddling along, so I gotta tell you, Peter, I think it’s a smart play by both companies to get involved with each other.”

GLICK: “That, oh, it’s not Apple. Let me just correct ourselves here. It is not Apple. [cross talk] Alright, I’m sorry, we got a little ahead of ourselves here on that. Um, Apple Dubai?” [sic]

Contrary to earlier reports, it was Abu Dhabi, not Apple (or “Apple Dubai”) that paid $622 million for an 8.1% stake in Advanced Micro Devices today. Orchestrated by the Mubadala Development Company (the investment arm of the Abu Dhabi government), the deal will make the Persian Gulf emirate one of the chip-maker’s biggest shareholders. And it will give AMD, which posted a loss of $396 million for its third quarter, some much-needed financial relief as it faces increased competition from rival Intel.

Said Roger Kay, principal analyst with Endpoint Technology Associates, the deal is a “pretty good one for AMD. What AMD wants is access to short- and intermediate-term financing. Abu Dhabi represents a pretty good partner, since they’re not on the board and it’s not structured as debt.”

It’s slower than initial expectations and about six months later than originally promised, but Advanced Micro Devices’ quad-core Opteron (Barcelona) processor is still a milestone for the company and perhaps an antidote for its sagging financial fortunes.

The new server chip, which puts four processors on a single silicon die, is the first of its kind and AMD’s shot at regaining some of the market its lost to a resurgent Intel. The company’s market share was about 25% in the middle of 2006. By mid-2007, it had slipped to close to 13%. “There is nothing that we would have been more excited about than getting it out earlier,” AMD CEO Hector Ruiz told eWeek. “But you know we are not making excuses. This is a damn difficult thing to do, as I’m sure you can imagine. …This is 600 million transistors on a chip, four cores, complex technology and tremendous architectural features. It was, frankly, a little tougher challenge than we had anticipated and it frustrated the hell out of us because we wanted to get it out there earlier.”

Of course you did. The Quad-Core AMD Opteron arrives at market nearly a year after Intel began shipping quad-core processors of its own and follows a string of consecutive quarterly losses. The stakes here have been high for quite a while. But is the quad-core Opteron the winning hand for which AMD hopes? Perhaps. Perhaps not. “Barcelona is not the sweeping challenge to Intel they wanted to make,” analyst Rob Enderle told the Austin American Statesman. “This keeps them in the game and competing. But it’s not a leadership position.”

Certainly, Intel doesn’t think so. This morning the company announced that it now expects third quarter revenue to be between $9.4 billion and $9.8 billion, improving on its previous guidance of $9 billion to $9.6 billion.

Note: John Paczkowski is on vacation and won’t be writing or posting videos until he returns Monday.

To keep you abreast of tech news while he’s away, we’re compiling a daily digest of 10 must-read tech stories. We’re calling it the Tech 10 and it appears below.

1. Music to their ears: SoundExchange, the recording-industry group that has been in a protracted battle with Internet radio companies, has reached a deal with them on royalties. The Associated Press reports that SoundExchange would cap fees at $50,000 a year for Webcasters offering more than 100 channels–down considerably from the much higher per-channel tax it had sought to impose.
2. Playing catch-up with YouTube, Yahoo plans to revamp its video portal. Miguel Helft of the New York Times writes that Yahoo will consolidate the Internet site’s somewhat messy video interface into a more interactive one enabling users to view and share videos and compile playlists. Of the plans, Helft quotes Mike Folgner, general manager of Yahoo Video: “We’re going to make it a more cohesive experience. Video is going to be everywhere on Yahoo.”



3. A teenage hacker from New Jersey has picked the lock that links the iPhone to AT&T. According to the Associated Press, 17-year-old George Hotz, using a complicated procedure involving both software and soldering, unlocked an iPhone from AT&T and was using it on T-Mobile’s network, freeing the handheld for calls overseas using carriers outside the U.S. After announcing the feat on his blog, Hotz put the reconfigured iPhone (pictured, left) up for sale on eBay.
4. Google goes Gotham? Bloomberg is reporting that the Internet search titan is in talks to provide online transit guides in New York City and environs. The guides, which are already available in more than a dozen cities, including Dallas and San Diego, show how to navigate transportation systems and could greatly expand Google’s revenue from ad sales to restaurants, hotels and other businesses that serve the nine million commuters in metropolitan New York.
5. IBM may take elements of its Jazz collaboration software open source. According to IDG News Service, the tech giant is considering open-sourcing some of the lowest layers of the framework, which makes software development easier, so people could “build on the kernel,” said a member of the Jazz management committee.
6. Sweet juice: Sony has developed a battery that uses sugar as an energy source. TMCnet reports that test cells of the battery have 50 milliwatts, so far the world’s highest electrical output for the so-called passive bio batteries. Sony engineers proved they work by putting four together to power a Walkman.
7. And in an industry where power is everything, Via Technologies has produced a processor that consumes a maximum of one watt of electricity. Reporting on the development, PC World notes that the Eden ULV chip will be used in mobile devices and embedded applications.
8. Manhunt 2, the sequel to Rockstar Games’ eponymous video-game gorefest, got a break in the form of a less-severe rating from the Entertainment Software Rating Board. According to CNET blog Crave, the board changed the rating from “adults only” (the equivalent of an NC-17 for video games) to an M-for-mature after Rockstar eliminated some ultraviolent content. The new rating means that companies like Sony and Microsoft will allow the game to run on their players, clearing the way for sales pegged to Halloween.
9. Decrying its role in “promoting” child prostitution, Atlanta Mayor Shirley Franklin is calling on online classified-ad service Craigslist to police itself better, according to the Atlanta Journal-Constitution. In a letter sent this week, Franklin asked the Web site to toughen warnings for personal ads and pages that offer erotic services and to delete postings advertising sexual services for sale. An Atlanta vice officer claims that Craigslist and similar Web sites facilitate 85% of the sexual trysts men in Atlanta make with underage youths.
10. News this week of a study that linked gender with color preference prompted Shiny Shiny (the self-described “girl’s guide to gadgets”) to assemble a selection of pink laptops. We eyed the Hello Kitty model (pictured here) and concurred that this was indeed a laptop that only a girl (of either sex) could love.

–posted by Associate Editor John Sullivan

Bet that $6-per-handset settlement Broadcom offered Qualcomm back in June is looking pretty good to the chip-maker right now. Yesterday, the Bush administration let stand the International Trade Commission ban on the import of devices using Qualcomm chips found to infringe on Broadcom patents.

“After extensive review, DHS [Department of Homeland Security] has advised that it does not believe there are public-safety risks sufficient to justify disapproval of the USITC’s limited exclusion order,” U.S. Trade Representative Susan Schwab wrote in her decision. “DHS has also advised that Broadcom Corporation’s offer of royalty-free public-safety licensing to state and local public safety organizations and its licensing agreements with two major wireless carriers will ameliorate to a significant degree concerns regarding the order’s potential effect on public-safety wireless broadband systems and 3G network deployment. We also understand that other market participants are investigating the use of a noninfringing software workaround. We believe that such licensing agreements and workarounds will address in large part the concerns raised about delay in 3G network deployment.”

Quite a nasty turn of events for Qualcomm. The company had lobbied–fiercely–for White House intervention to reverse the ITC ruling, arguing that allowing it to remain would harm consumers, telecom carriers and handset makers. But the administration apparently didn’t buy it, and without the sort of deus ex machina it could have offered, Qualcomm is nearly out of options. It is facing an immediate ban on all forthcoming handsets running its WCDMA and EVDO chips–a potentially devastating blow to the company’s hugely important chip IP licensing business.

“If I’m one of Qualcomm’s customers, I’m furious,” Gartner analyst Michael King told the Associated Press. “My product line has the potential to be disrupted. The merits of the case notwithstanding, the fact they let it get this far is going to be somewhat unconscionable to their customers.”

Qualcomm, which is working on a software workaround to avoid any infringement on the Broadcom technology in question, is pursuing a stay of the ITC ban. Third time’s a charm, right?

If Advanced Micro Devices is, as former Intel CEO Andy Grove once said, “the Milli Vanilli of semiconductors,” then Intel may turn out to be its Clear Channel.

The European Commission said today it has brought antitrust charges against Intel, which the commission accuses of violating competition laws and abusing its dominant position in the global microprocessor market. “In the short, medium and long term,” said an EC spokesman, “we think that the actions of Intel are bad news for competition and consumers.”

Obviously, Intel disagrees. “We are confident that the microprocessor market segment is functioning normally and that Intel’s conduct has been lawful, pro-competitive and beneficial to consumers,” Intel Senior Vice President Bruce Sewell said in a press release, adding that there was compelling evidence that the “industry is fiercely competitive and working.”

AMD, which sued Intel in June 2005, claiming the company had coerced customers into scrapping or delaying the launch of machines outiftted with AMD chips, dismissed Intel’s comments. “It’s preposterous to claim to be the guardian of consumers,” said AMD spokesman Jens Drews. “I think they have overplayed their hand there.”

Thanks to its iPod Shuffle and Nano, Apple’s appetite for NAND flash memory is akin to McDonald’s for potatoes–near insatiable and market moving. Back in 2005, Apple made headlines for a reported agreement to buy 40% of Samsung Electronics’ NAND flash-memory chip output and rumored plans for a joint foundry with the South Korean company.

Today, the company is in the headlines again–this time because it’s on track to consume 25% of the world supply of flash memory in the third quarter. And according to Taiwan-based online chip clearinghouse DRAMeXchange, that will lead to a chip shortage. “According to DRAMeXchange’s figures, in the wake of the expected hot iPod sales and chip inventory buildup for 4Q07, the iPhone and iPod will take up roughly 25% of worldwide NAND flash production in 3Q07,” the company said. “As a huge portion of the capacity is being allocated to Apple in meeting the anticipated demand in 2H07, many downstream vendors have been unable to secure enough flash chips. … A flash chip shortage will occur in the third quarter. Flash prices are thus projected to continue rising.”

Seems Apple’s not only reshaping the music and cellphone industries, but the memory industry as well.

It was a nice try, but AMD’s Better by Design event last week seems not to have rained out Intel’s Centrino parade so much as give it a bit of a sun shower. The chipmaker launched the “Santa Rosa” upgrade of its Centrino notebook platform yesterday, one that delivers up to twice the performance of earlier Centrino platforms, extended battery life, faster boot time and support for the draft version of 802.11n wireless networking that offers theoretical transfer speeds of up to 300 megabits per second at twice the range of 802.11g solutions. Impressive, eh? Certainly formidable enough to ensure its debut on machines from Hewlett-Packard, Dell, Lenovo Group, Gateway and pretty much any other PC manufacturer you can think of.

Clearly, Intel is regaining the performance and price/performance leads it needs to reverse its market-share decline and is beginning to deliver on the promise CEO Paul Otellini (shown above right in ceremonial bunny suit) made at the Intel Developers Conference in San Francisco last year. “Much has been written in the last year about Intel losing its momentum, losing its leadership in the server market space,” he said at the time. “I believe very much that with this new set of dual and quad-core microprocessors, we’ve now regained our leadership.” Yes, yes, yes–wonderful. Now get back to work on that 80-core teraflop chip …