A Little Chip Designed by Apple Itself

The most notable aspect of Apple's new iPad is the A4, the chip that powers the tablet device and was developed in house. As we first highlighted last week, the A4 chip is the first fruit to come of Apple's 2008 acquisition of P.A. Semi, a low-power chipmaker. Recent upticks in supplier and channel risk have made vertical integration an especially attractive strategic decision for many firms. In periods of increased volatility, a collection of diversified businesses provides executives visibility into currently volatile leading indicators of performance, and this information could lead to smarter capital-allocation decisions…


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