I think that it was a mutually benefical deal
For Apple, they get a steady supply of cutting edge chips at reasonable prices.
When I say cutting edge, some people may say, "They're no longer cutting edge, cause AMD is faster, cheaper, etc." Well, I think that Intel has always been more interested in adding new and innovative features to their hardware, that a lot of people have seen as marketing gimmicks, since the performance has fallen behind AMD recently.
For example the new Viiv technology, their virtualisation technology, etc.
So what exactly is Intel going to get that it won't get from any Upscale PC models like Dell XPS, or Sony Viaos? Well, I think that Apple's software will finally give the intel chips the chance to shine. I mean, Microsoft's software, while it has been optimized primarily for Intel chips, it has had to preserve compatibility with old chips and hardware, as well as support AMD and other competitors CPUs. Since Apple's new hardware will only be running on Intel's newest technology, it would be possible to optimize the software to run very well using the specific technologies Intel uses.
Good bye headlines like this:
AMD annihilates Intel in dual core benchmark tests
Hello headlines like: "Mac-Intel platform best computing setup EVER!!!!"
"Combination of Apple elegance and Intel Horsepower Blows away competition" (note: Those were imaginary headlines)
Intel was fooling the PC buying public for years by selling ships with higher Megahertz/Gigahertz ratings than AMD's CPUs but after using this trick for at least a decade, in the last year AMD has been outselling Intel repeatedly, with the most recent reports in November stating that AMD outsold Intel again. All this despite the fact that AMD had few deals with Computer Manufacturers like Dell to include their CPUs in the Computer they built.
Until last month when this happened:
Dell is selling AMD chips. But why?
I'll save you the trouble of having to actually read: The answer is simple, Customer Demand. People have finally started realizing that Intel technology was *effectively* inferior. The one thing that has been helping Intel out so far has been the popularity of the Centrino Mobile computing platform, since it finally allowed PC laptops to have run times that were competitive to Apple *books.
It almost seems like a side effect, but the Pentium M's also perform about as good as the Pentium 4 Desktop Chips. So Intel Decided to abandon the Pentium 4 Netburst Design and throw all their effort into the creating a Desktop Chip from the Pentium M, one that they hope will be able to make people forget about AMD.
Since Apple only has to optimize their code for the current generation that Intel is bringing out, I think that people are going to be very surprised at the outcome.
I know it may seem that I'm saying going with intel was a bad decision, but I don't mean to imply that Intel Chips are inferior to AMD's. Maybe they are, maybe not. But Intel has been wandering in the innovation wilderness for a while now. Like everyone else in the PC world. Microsoft hasn't put out anything revolutionary for Consumers in a while. I'm sure they have some good ideas floating around their campus, but they're lacking a good implementation. And while Apple may be known for their innovation, they are really masters of implementation. The Intel decision allows them to continue that process, and it's in both Apple's and Intel's interests that the new Intel Macs are the best computers available. With Intel they get cutting edge technology, just like IBM, Except now they don't have to worry about supply shortages or the problem of hitting performance targets. If IBM didn't get the G5's to 3 GHz, small problem for IBM, BIG problem for Apple. If Intel doesn't get their processors to 3GHz, BIG problem for Intel. It'll be a problem for Apple to, but nothing they haven't dealt with before. Oh wait, what's that over there? It's a bunch of better performing x86 chips in the AMD product line? Problem Solved.
I honestly don't think IBM is even remotely concerned about losing Apple's business. IBM is making the Chips for All Three Video Game Consoles. That would have dwarfed the number of chips sold to Apple anyway, and I think Apple, rather S. Jobs knew that he'd have to spend another few years explaining why the Power Macs hadn't hit 3 Ghz yet, especially since IBM is Making Multi-Core 3.2 Ghz chips for Microsoft's Xbox 360.