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<p>That’s because of the licensing issue.</p>
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<p>The suit relates to a disagreement between Intel, the maker of the Core 2 Duo CPUs used in Apple’s MacBook line and its desktop Macs (apart from the high end Mac Pro, which uses Intel’s Xeon “Harpertown” CPU), and NVIDIA, which last year expanded its role with Apple as a GPU provider into one where the graphics company now supplies the chipset-on-a-chip controller that serves as the glue between Intel’s CPU and everything else in the computer.</p>
<p>Intel and NVIDIA teamed up in 2004 in a patent licensing agreement that resulted in NVIDIA making a competitive move into Intel’s chipset business with its MCP79 chipset platform. Last year, Apple became the first PC vendor to adopt NVIDIA’s one-chip controller in its MacBook line. The move not only simplified and improved the architecture of Apple’s notebook machines, but also provided significantly better graphics compared to the Intel controller chips it had been using. </p>
<p>[AppleInsider</a> | How Intel’s battle with NVIDIA over Core i7 impacts Apple](<a href=“http://www.appleinsider.com/articles/09/02/21/how_intels_battle_with_nvidia_over_core_i7_impacts_apple.html]AppleInsider”>How Intel's battle with NVIDIA over Core i7 impacts Apple | AppleInsider)</p>
<p>ZDnet reports on NVIDIA’s announcement yesterday that it will “postpone further chipset investments” in the wake of licensing issues involving Intel’s Nehalem and Core processors. NVIDIA’s chipsets including integrated graphics processors are currently used throughout Apple’s low-end lines, and the shift to NVIDIA was seen as a significant improvement over Intel’s similar chipset offerings.</p>
<p>[NVIDIA</a> Exiting Chipset Business Pending Resolution of Licensing Dispute With Intel - Mac Rumors](<a href=“http://www.macrumors.com/2009/10/08/nvidia-exiting-chipset-business-pending-resolution-of-licensing-dispute-with-intel/]NVIDIA”>NVIDIA Exiting Chipset Business Pending Resolution of Licensing Dispute With Intel - MacRumors)</p>
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<p>Why? Huang blames chip giant Intel (INTC). Nvidia’s graphics chipsets, which Steve Jobs liked enough to buy by the boatload, aren’t allowed to work with Intel’s latest offering, code-named “Nehalem” – and in the computer world no Intel compatibility means no mainstream future. Nvidia’s Ion chip is designed to work alongside the chip giant’s Atom processor, but lately it’s been priced out of the market by – you guessed it – Intel.</p>
<p>[Intel's</a> latest headache: Nvidia - Big Tech - Fortune Brainstorm Tech](<a href=“http://brainstormtech.blogs.fortune.cnn.com/2009/12/04/intels-latest-headache-nvidia/]Intel’s”>http://brainstormtech.blogs.fortune.cnn.com/2009/12/04/intels-latest-headache-nvidia/)</p>
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<p>So Apple is in a bind. Current model MPBs use nVidia chipsets with Intel’s previous generation Penryn processors and the nVidia chipsets have the capability to switch between integrated and discrete graphics. Dell and HP started shipping Nehalem laptops in 2009. I assume that they’re using Intel or Intel-licensed chipset technology. Apple wants the switchable graphics that nVidia provides. Switching chipsets would have required a decent design lead-time. Intel’s integrated graphics in general aren’t very good even though their integrated graphics dominate the market (the vast majority of PCs and laptops do not require discrete graphics). So the Apple world is left waiting and guessing on the next MPB refresh. In the past, the wait was when Apple had the time and inventory to do the refresh. I think that the technology issues weren’t that big. This time there’s a licensing and technology issue.</p>
<p>I think that the easiest thing for Apple would be if nVidia just licensed Intel’s chipset technology. Unfortunately there’s some pretty bad blood between nVidia’s CEO, Huang and Intel. Huang is a bit of a loose cannon in the semi-world.</p>