Intel's itanium is a fast chip, but its 64 bit so it cant run 32 bit applications--plus its expensive as all-get-out. If Apple could backwards compatible their G5 so that it would run both 64 and 32 bit apps, they would be in good shape. I would just HATE to see Apple produce a 64 bit G5, and make their consumers have to buy all new software AGAIN, especially after they upgraded for OSX.
Let's clarify, Itanium is 64bit but it uses a completley different Insruction set than x86. It's based on VLIW processor architecture with some clever enhancements. Itanium is expensive - 800MHz and 733MHz processors with 4MB of L2 cache are $4,227, 800MHz with 2MB of cache $1,980. The 733MHz with 2MB of cache costs $1,177. Prices are per chip for 1,000-unit quantities.
Plus Itanium runs x86 code very slooooowly. Itanium is
not intended for the desktop it's for high end customers.
AMD's x86-64 so called Hammer processor are an extension to x86 and are much more likely to do well.
Now the G5 will be 64bit and will run 32 bit's apps no problem, microprocessors are designed to be backwardly compatable because of the huge investement in software development.
Motorola by my understanding is not doing well. In the UK they being cutting back on the telecoms workforce in order to keep costs down. IBM has the expertise, and facilities to fab the G5 for apple, but AltiVec was developed and is owned by Motorola.
I'm not sure if IBM was offered an AltiVec license as part of the PPC consortium but it seems likely that given Motorola's problems some sort of licensing agreement between IBM and Motorola could be reached.
This benefits:
Motorola in the short term with a cash injection.
IBM in the long term, it can integrate AltiVec into G3 if it wants and it can Fab G5's.
Apple with a second CPU supplier for the high-end CPU's helping reduce costs, possibly increasing market share.
Us, we get faster, cheaper Apples.
"Everyone's a Winner!"