Apple signs delivery agreement with Freescale

Ever since Apple's announcement of plans to move to Intel processors, there has been much speculation about the relationship between Apple and its G4 processor supplier: Motorola-spinoff Freescale Semiconductor.

New details emerged this week when Apple and Freescale signed a supply agreement, as noted in a regulatory Securities and Exchange Commission filing.

Under the terms of the agreement, subject to certain conditions, Freescale is obligated to supply its microprocessors for orders placed by Apple through December 31, 2008. Apple is under no obligation to purchase Freescale microprocessors other than work in progress that was in place at the time the agreement was executed.

The agreement extends through the end of 2008, even though Apple announced it would deliver Intel Macs beginning mid-2006 and that the transition to Intel would be completed by the end of 2007.

TheStreet speculates that this is a sign of a longer transition timeline. In its own report, Think Secret echoes this possibility but points out that it could just as well be a contingency plan or be intended to allow Apple to buy replacement chips for older models.