Department of Defense Unhappy With Apple Chip Company Purchase - Gizmodo Comments

Department of Defense Unhappy With Apple Chip Company Purchase

GadgetPlay — Sat, 26 Apr 2008 21:25:21 EDT

@johnnyabnormal: Oops, they did promote him to "Bird Colonel."

GadgetPlay

Department of Defense Unhappy With Apple Chip Company Purchase

GadgetPlay — Sat, 26 Apr 2008 11:39:56 EDT

@johnnyabnormal: I always heard it was escaping from the evil clutches of Colonel Sanders. (Why don't they give that poor man a posthumous promotion?)

GadgetPlay

Department of Defense Unhappy With Apple Chip Company Purchase

johnnyabnormal — Sat, 26 Apr 2008 02:24:17 EDT

@GadgetPlay: Maybe. But then we'd never know why the chicken crossed the road.

johnnyabnormal

Department of Defense Unhappy With Apple Chip Company Purchase

Pender — Sat, 26 Apr 2008 01:22:48 EDT

@tehronin: Except that it has nothing to do with their core business.

Pender

Department of Defense Unhappy With Apple Chip Company Purchase

GadgetPlay — Sat, 26 Apr 2008 00:39:12 EDT

@johnnyabnormal: No problem, I should have known. Maybe if we introduce my voices to your voices, they'd hit it off and leave us alone.

GadgetPlay

Department of Defense Unhappy With Apple Chip Company Purchase

johnnyabnormal — Fri, 25 Apr 2008 23:35:12 EDT

@GadgetPlay:

Sorry about that. After I posted it, I was like..."Hmmmm, will GadgetPlay know I'm referring to mricyfire?" As far as the voices? All the time...all the time...where are my meds?

johnnyabnormal

Department of Defense Unhappy With Apple Chip Company Purchase

GadgetPlay — Fri, 25 Apr 2008 18:11:45 EDT

@johnnyabnormal: "@GadgetPlay: Nothing is more absurd or hypocritical than someone who says it's "anti-American" to dissent or criticize one's own government. Simply hilarious, but sad as well."

You may be losing it. I've admired someone's sarcasm, and asked one of your opponents to be more civil. Are you hearing the voices again? Perhaps you're confusing me with @mricyfire?

GadgetPlay

Department of Defense Unhappy With Apple Chip Company Purchase

The-Joker — Fri, 25 Apr 2008 14:09:16 EDT

@OldCrow: What's Skynet?

Apple should've just licensed Sony's Cell processor then it would be an ultimate computer. Now that would actually give me a reason to buy a Mac...

The-Joker

Department of Defense Unhappy With Apple Chip Company Purchase

iridius — Fri, 25 Apr 2008 13:58:40 EDT

Editor: Which means Apple has no interest in anything THEIR currently making or about to make, despite Blam's reasonable assumption that was the case.

Change to they're

iridius

Department of Defense Unhappy With Apple Chip Company Purchase

OldCrow — Fri, 25 Apr 2008 13:42:42 EDT

Checkmate, Apple moves in for the fatality.

Just one more step twoards SkyNet.

OldCrow

Department of Defense Unhappy With Apple Chip Company Purchase

Mokers — Fri, 25 Apr 2008 11:45:26 EDT

@rexplex: Exactly. It's not like the chips the DoD needs are going to suddenly evaporate in thin air.

Mokers

Department of Defense Unhappy With Apple Chip Company Purchase

Rain-man — Fri, 25 Apr 2008 10:57:33 EDT

Mmm... apple chips. Yummy and healthy.

Rain-man

Department of Defense Unhappy With Apple Chip Company Purchase

MrBlahBlah — Fri, 25 Apr 2008 10:45:12 EDT

@92BuickLeSabre:

2.0x - 2.5x revenue is a reasonable multiple to pay for a tech company. maybe a bit low, but then again, depends on the situation. if the company needed additional financing or equity backing to pursue its roadmap, then in a way they would be less demanding on the purchase price

MrBlahBlah

Department of Defense Unhappy With Apple Chip Company Purchase

GiltProto — Fri, 25 Apr 2008 10:33:43 EDT

Dealing with the government has become so filled with paperwork that commercial companies (especially in tech) either hate being a government supplier or specialize in it. Either way you make more money doing one or the other than both.

GiltProto

Department of Defense Unhappy With Apple Chip Company Purchase

uberfu — Fri, 25 Apr 2008 10:19:30 EDT

uberfu

Department of Defense Unhappy With Apple Chip Company Purchase

uberfu — Fri, 25 Apr 2008 10:19:19 EDT

WTF Ever!! Let the DoD have their temper-tantrum_ As long as Apple respects the legality of current standing contracts until they run out or expire - then the DoD has nothing to say on the matter_ They also have no authority to enforce jack-shit in the matter - so who cares_

What would be funny is if Bush steps in and tries to dictate what Apple "must" do on the behalf of national security_ That would be funny and I'd love to see Steve eat Bush for breakfast_

@segamanxero: Okay_ Apple is not going to switch back to the RISC arch that THEY JUST LEFT_

That's a huge cost to migrate an entire platform across all product lines_ This company is a fraction of the size that Motorola and IBM are - so even if Apple were to "switch" back to RISC - PA Semi did not have the production levels to accommodate the mass consumer_

No they aren't switching back_

@92BuickLeSabre: you missed it:

"Ten defense systems, to the tune of $100 million in products over the next four years, use P.A. Semi's PWRficient processor." -- meaning that that PA SEmi gets a cut of the $100 million_ the government projects are worth that much NOT PA Semi's share_ Get it!

uberfu

Department of Defense Unhappy With Apple Chip Company Purchase

WD40 — Fri, 25 Apr 2008 09:21:17 EDT

@92BuickLeSabre: I can't help but agree with you, YouTube sold for more than this company and all they do is host videos. Doesn't make sense for a super good chip company to sell for double what it made in a year.

WD40

Department of Defense Unhappy With Apple Chip Company Purchase

rexplex — Fri, 25 Apr 2008 09:08:52 EDT

I think that this is a tempest in a teakettle folks.
1) PA Semi doesn't have any factories. They design & license the chips. Most (not all) of their chips are built by Texas Instruments.
2) Apple won't refuse royalty income on a product that is already designed, they'll license the PWRficient chip & let TI or Lockheed or whoever the Pentagon wants build that chip forever, as long as they send a check to Cupertino for every chip built.
3) the PA engineers are going to start working on other projects, so there won't be a PWRficient II, but the way that the DoD rolls out new systems, they wouldn't need that until 2025 anyway.

I really think that this is FUD trying to make Apple look bad - they had a brilliant quarter, but they are leaving our warfighters high & dry.
Say what you like about the RDF and Jobs, but he is first & foremost a businessman. There is no way he cuts of a garunteed stream of revenue.

rexplex

Department of Defense Unhappy With Apple Chip Company Purchase

Geraldo — Fri, 25 Apr 2008 09:06:17 EDT

@92BuickLeSabre:

"Ten defense systems, to the tune of $100 million in products over the next four years, use P.A. Semi's PWRficient processor."

The statement sounds more like there are ten defense systems -- that are made and sold by other companies -- use the P.A. product. These other companies are projected to sell $100 mil of their products in the next 4 years.

Geraldo

Department of Defense Unhappy With Apple Chip Company Purchase

ecobore — Fri, 25 Apr 2008 04:23:37 EDT

Apple is NOT a military hardware manufacturer, so why should they support old tech. It is not the role of private industry to prop up aging US military defense systems! I'm sure this purchase is to provide high speed chips for apple mobile platforms - read intelligent iPods and iPhones and potentially a crossover product between an iPhone and a Macbook.

ecobore

Department of Defense Unhappy With Apple Chip Company Purchase

Kaiser-Machead's Chips Ahoy! — Fri, 25 Apr 2008 03:38:41 EDT

@mricyfire: I'd be amused if you got run over by an M-1 Abrams as you typed that.

Kaiser-Machead's Chips Ahoy!

Department of Defense Unhappy With Apple Chip Company Purchase

smackswell — Fri, 25 Apr 2008 02:56:13 EDT

Something big is happening. No one knows what that will be. Except stevie and whoever he cavorts with. So sit tight and watch the magic.

smackswell

Department of Defense Unhappy With Apple Chip Company Purchase

GhostofCharlesBronson — Fri, 25 Apr 2008 02:50:17 EDT

@mricyfire:
I'm sorry but with that comment you just started sucking on your own foot.

Go wave your flag at a history book and figure out what it is to be an American you ignorant cock grab.

GhostofCharlesBronson

Department of Defense Unhappy With Apple Chip Company Purchase

johnnyabnormal — Fri, 25 Apr 2008 02:01:50 EDT

@GadgetPlay: Nothing is more absurd or hypocritical than someone who says it's "anti-American" to dissent or criticize one's own government. Simply hilarious, but sad as well.

johnnyabnormal

Department of Defense Unhappy With Apple Chip Company Purchase

Odomzig — Fri, 25 Apr 2008 01:53:08 EDT

@Mark 2000:

Incorrect... not to hype an engadget story on here, but check this out from last year (the story was also widely reported elsewhere):

[www.engadget.com]

Odomzig

Department of Defense Unhappy With Apple Chip Company Purchase

johnnyabnormal — Fri, 25 Apr 2008 01:52:33 EDT

@GadgetPlay: Sometimes!

johnnyabnormal

Department of Defense Unhappy With Apple Chip Company Purchase

johnnyabnormal — Fri, 25 Apr 2008 01:48:13 EDT

@mricyfire: Ok, tough guy. Can I ask you a personal question? Do those little yellow ribbons help you sleep better at night?

johnnyabnormal

Department of Defense Unhappy With Apple Chip Company Purchase

matt buchanan — Fri, 25 Apr 2008 01:30:52 EDT

@Buran: Also, the transition to the PWRficient chips, from what I've read was a surprisingly fast one for the military, who started using it in a shitload of projects at once (because of how impressed they were). So if say, IBM doesn't start making the PWRficient chips for them, I could see why they'd be pissed.

matt buchanan

Department of Defense Unhappy With Apple Chip Company Purchase

matt buchanan — Fri, 25 Apr 2008 01:28:25 EDT

@ludwigk: They actually passed over P.A. Semi for Intel—P.A. Semi thought they had the contract with Apple before Jobs shocked them w/ the Intel announcement.

matt buchanan

Department of Defense Unhappy With Apple Chip Company Purchase

thechansen — Fri, 25 Apr 2008 01:16:36 EDT

@mricyfire: Questioning the practices of government is the basis for our country. The fought a war about it in the 1700s or something. I'm probably just mistaking all the details with an HBO miniseries.

I for one am waiting for Apple branded bunker busters and matching dancing silhouette commercial.

thechansen

Department of Defense Unhappy With Apple Chip Company Purchase

whootowl — Fri, 25 Apr 2008 00:51:59 EDT

Most defense projects are based on COTS processors these days. That's why many defense projects get cancelled. By the time the product is ready for low-rate initial production, the processor is no longer available. Making a life-time buy of processors up-front is usually not an opted. So, they keep going back to the drawing board over-and-over until Congress finally gets fed up and yanks funding for the project, usually after hundreds of millions or billions of dollars have been wasted.

whootowl

Department of Defense Unhappy With Apple Chip Company Purchase

GadgetPlay — Fri, 25 Apr 2008 00:50:14 EDT

@Mark 2000: Great sarcasm!

@mricyfire: A little strong, perhaps. We always try to be civil here. Usually. Sometimes.

GadgetPlay

Department of Defense Unhappy With Apple Chip Company Purchase

Buran — Fri, 25 Apr 2008 00:39:22 EDT

@scoobydoo: I know you were being sarcastic but come on. Nothing is produced forever. It's like complaining that VW dealers won't support your 1966 aircooled Beetle anymore. Time to find a new-old-stock supplier or, more realistically for the DoD, buy a newer car.

Buran

Department of Defense Unhappy With Apple Chip Company Purchase

pevans34 — Fri, 25 Apr 2008 00:38:24 EDT

@Mark 2000: yeah no thats great, I love it when our military cant get what they need in order to properly defend your right to put them down.

pevans34

Department of Defense Unhappy With Apple Chip Company Purchase

someToast — Fri, 25 Apr 2008 00:05:53 EDT

@D-Bo: I suppose next time I get an iTunes update it will come with a Global Thermonuclear War download pre-checked?

Nawww... you want to keep that software away from nuclear facilities, aircraft navigation or communication systems, air traffic control systems, or life support systems.

[www.flickr.com]

someToast

Department of Defense Unhappy With Apple Chip Company Purchase

diabolusunknown — Thu, 24 Apr 2008 23:56:42 EDT

@mricyfire: Woah Cheney, relax buddy. Have a freedom fry and take a breather.

diabolusunknown

Department of Defense Unhappy With Apple Chip Company Purchase

iscangel — Thu, 24 Apr 2008 23:39:05 EDT

ohhhh god bless El Jobso!

iscangel

Department of Defense Unhappy With Apple Chip Company Purchase

mricyfire — Thu, 24 Apr 2008 23:33:07 EDT

@johnnyabnormal:

Leave America if you don't like how we run things... We would be better off anyways without you and your anti-American ways

mricyfire

Department of Defense Unhappy With Apple Chip Company Purchase

Rev. Eaton Yorke Hunt — Thu, 24 Apr 2008 23:21:45 EDT

Uncle Steve is saving them from making horrible soulcrushing mistakes on behalf of the military industrial complex. They have begged to be cut free from the murderous claws of defense contracts and have been delivered into an oasis of creativity on the path to simple ubiquitous toolsets to aid in our evolution as a species.

Either that or here come the iNukes!

Rev. Eaton Yorke Hunt

Department of Defense Unhappy With Apple Chip Company Purchase

johnnyabnormal — Thu, 24 Apr 2008 23:08:58 EDT

Department Of Dipshits

johnnyabnormal

Department of Defense Unhappy With Apple Chip Company Purchase

phryed — Thu, 24 Apr 2008 22:59:16 EDT

these are most probably embedded processors not CPUs for computers. Apple will stick with intel CPUs for the foreseeable future.

phryed

Department of Defense Unhappy With Apple Chip Company Purchase

itchytooth — Thu, 24 Apr 2008 22:21:19 EDT

Maybe they've got some low cost desktops planned. All universal apps would run on a PPC CPU, you just wouldn't be able to install Windows. I don't see why Intel and PPC chips couldn't coexist in Apple's lineup.

itchytooth

Department of Defense Unhappy With Apple Chip Company Purchase

bigMoneyMIKE — Thu, 24 Apr 2008 22:09:40 EDT

But.. Will it run on PsyStar machines?

bigMoneyMIKE

Department of Defense Unhappy With Apple Chip Company Purchase

92BuickLeSabre — Thu, 24 Apr 2008 22:07:05 EDT

Thanks all.

So to compound my show of ignorance, ludwigk, if Apple was previously thinking about going with these guys when they went with intel, can you give me a quick explanation (for dummies) about why their chip structure wouldn't work for other mainstream uses?

I don't mean to understate the importance of good management, marketing, getting that one, good, contract (and I guess recent AMD's slipping might prove exactly the point), but this still all seems so strange to me that what is apparently a quality product, with at least some stable certain income would sell for what seems like a pretty low price.

92BuickLeSabre

Department of Defense Unhappy With Apple Chip Company Purchase

TK71 — Thu, 24 Apr 2008 21:57:50 EDT

@92BuickLeSabre:

Assuming the $100M is sales from gov. contracts over the next four years, that gives P. A. Semi pretax profits of $25M using a 25% profit margin (AAPL's is ~22%). Take taxes out of that and spread it over four years, and it really isn't all that much. I don't know what their total sales looks like, but I think the $278M price is about right.

TK71

Department of Defense Unhappy With Apple Chip Company Purchase

D-Bo — Thu, 24 Apr 2008 21:56:44 EDT

@albokay: I suppose next time I get an iTunes update it will come with a Global Thermonuclear War download pre-checked?

D-Bo

Department of Defense Unhappy With Apple Chip Company Purchase

Ryanraven — Thu, 24 Apr 2008 21:54:42 EDT

So Ipod Docks on the M16?

Ryanraven

Department of Defense Unhappy With Apple Chip Company Purchase

gadgetchic — Thu, 24 Apr 2008 21:43:55 EDT

@albokay:

idk why but that was fucking hilarious

gadgetchic

Department of Defense Unhappy With Apple Chip Company Purchase

albokay — Thu, 24 Apr 2008 21:40:39 EDT

Imagine the power Jobs will have once the government has to go thru Itunes in order to order air strikes.

albokay

Department of Defense Unhappy With Apple Chip Company Purchase

Mark 2000 — Thu, 24 Apr 2008 21:38:51 EDT

Jobs is a hippy. He would'nt sell crap to the military if could help it. Another reason to love Apple.

Mark 2000

Department of Defense Unhappy With Apple Chip Company Purchase

Castle1914 — Thu, 24 Apr 2008 21:38:23 EDT

@92BuickLeSabre: Mismanagement?

The Gov is going to start using macs! Mwah hah hah!

Wait what did you write?

Oh oh oh! Well it's not like the Military can't just make Apple fulfill the contracts they just purchased.

Castle1914

Department of Defense Unhappy With Apple Chip Company Purchase

ludwigk — Thu, 24 Apr 2008 21:38:07 EDT

@segamanxero: right, a CPU switch right after finishing a multi-year architecture transition that took 100,000's of engineering man hours to a platform that is not even desinged for general purpose computing. Instead of staying with intel, who's product roadmap is looking brighter than ever.

ludwigk

Department of Defense Unhappy With Apple Chip Company Purchase

mdawg4624 — Thu, 24 Apr 2008 21:37:51 EDT

@92BuickLeSabre: Steve obviously had em trapped in his Reality Distortion Field. didn't the meeting go down at his house?

mdawg4624

Department of Defense Unhappy With Apple Chip Company Purchase

92BuickLeSabre — Thu, 24 Apr 2008 21:33:03 EDT

Can someone explain to me the economics of a super-efficient chip company with at least $100M in guaranteed government contracts selling itself for $278M?

What am I missing here? What keeps such a company from being a major player with major value?

92BuickLeSabre

Department of Defense Unhappy With Apple Chip Company Purchase

Rususeruru — Thu, 24 Apr 2008 21:24:48 EDT

Apple is anti-American BOYCOT BOYCOT! no seriously amazing photo made me laugh out loud

Rususeruru

Department of Defense Unhappy With Apple Chip Company Purchase

scoobydoo — Thu, 24 Apr 2008 21:24:11 EDT

Why does Apple support the terrorists?

scoobydoo

Department of Defense Unhappy With Apple Chip Company Purchase

mdawg4624 — Thu, 24 Apr 2008 21:21:02 EDT

This is getting juicy. Wonder what they're thinkin up over on the Infinite loop.....

mdawg4624

Department of Defense Unhappy With Apple Chip Company Purchase

diabolusunknown — Thu, 24 Apr 2008 21:16:45 EDT

Apple isnt going to be pleased when people start installing OSX on non-Apple branded Tomahawk Cruise Missiles.

diabolusunknown

Department of Defense Unhappy With Apple Chip Company Purchase

segamanxero — Thu, 24 Apr 2008 21:12:31 EDT

apple could cash in on all the extra crap that that company does. but from the looks of things apple is just gonna use that companies skills and advancements to make apple products better, quite possibly a switch from intel to this chip... im gonna assume a CPU switch cause they have done that before and i would expect that...

segamanxero

Department of Defense Unhappy With Apple Chip Company Purchase

tehronin — Thu, 24 Apr 2008 21:12:29 EDT

Apple would be stupid to take a verticle market like that and toss it aside. Just another guarateed source of revenue for Apple.

tehronin