Cool. Go Intel. I would hope that this means that, somehow, we'll get some of the newer developments that will take much longer to hit PC mainstream given the much more cautious business model of that industry/market.

They must be working with Apple on custom chipsets that only Apple would use. Maybe taking existing designs and modifying them to the needs of Apple. Well at least it's an interesting idea.

How about working with Apple on developing a cross between SSE and VMX? Apple had a lot of input on the original spec of VMX. Another possibility.

It could also be something as mundane as working on getting some fast compilers for Xcode.

Apple is always going to be the poster child for new tech. It's their thing. And if Intel has cool technology, Apple will be there to put a cool wrapper on it and sell it to the public.
It's a shame that Intel stopped their CMOS High definition TV set on a chip work. I'd have loved to see them part of an Apple home theatre set up.

Oh well maybe Apple can hook up with Canon or Toshiba and get a SED HDTV in the lineup. Those screens look to be hot and it's something Apple would do.

Hard to imagine Apple ever turning over its motherboard or peripheral production to Intel, but anything is possible. Just like Microsoft has an internal group, this makes sense. Direct support, both sales and technical, encourage Apple's transition and make the switch much more sensible. Intel is definitely working to secure the percieved care that I'm sure it wants from the established Macintosh community.

I buy your vid-card point, but I was under the impression that Intel processors will actually be slightly more expensive than Apple's current contract with IBM for G5s.

The skunk works project is the interesting part here. We know that APple has been running OS X on Mactels since Day One - has the skunk works team been with them the entire time?

It's an interesting era we are moving into. Like the PC makers who release a new computer when Intel releases a new chip, Apple will probably be releasing computers with new chips on the same day - not the usual wait for a Keynote from Steve J. It will probably mean that computers are refreshed far faster than we are used to seeing in the past, making a buying decision (buy now or wait?) more difficult.

While Apple will start with the generic processors that Dell and IBM use there is also a chance for Intel to let Apple lead with the more exotic chips that the others don't want to move to, which could be interesting in 2 - 3 years.

As far as initial pricing of the initial Mactels go, I see the potential for some cuts, but I also see the opportunity for Apple to recover the R&D, design and administrative investments that have been needed to get the Mactel to market. Look for the lower end to remain about the same in terms of pricing and the upper end to get improvements that will justify a $2,999 price tag on the top PM.

I think that the price of Macs will stay the same. People have come to expect the current pricing of the Macintosh line, and still making the "switch" to a Mac will have nearly the same consequences as it always has had.

As for chip pricing, I would find it hard to believe that the current G4/G5 pricing is more expensive than Intel processors. Intel makes processors in bulk and has been doing so for a long, long time.

Sure, Apple may be able to drop the prices a tad. But Apple will always protect its high margins.