The next generation of iPhone appears set to claim exclusive access to advanced graphics core and video decoding technology, thanks to a secret licensing deal between Apple, mobile graphics leader Imagination Technologies, and Samsung, the iPhone's ARM "system on a chip" manufacturer. The result may be an ideal platform for handheld gaming and high definition video playback.

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Global financial services firm Lehman Brothers initiated coverage on Apple this week with an Overweight rating and $195 price target given the company's ongoing share gains in the PC market, potential for open-ended growth with new iPhones, and prospects for groundbreaking new products later this year and next.

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There's some more anecdotal evidence this week to suggest that Apple Inc.'s iPhone will eventually abandon its Samsung-based roots and make the jump to Intel's freshly-coined Atom architecture.

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Intel Corp. said this weekend that "Intel Atom" will be the official name for its new family of low-power processors designed specifically for mobile Internet devices (MIDs) and a new class of simple and affordable Internet-centric computers arriving later this year.

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Intel has revealed some of the first official details of its upcoming lower-power Silverthorne processor that will soon turn up in a handful of next-generation mobile internet devices from Apple and other electronics manufacturers.

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An initiative on the part of Apple Inc. to develop a modern day successor to its now defunct Newton handheld device is not expected to play a role in next week's Macworld Expo.

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Exhibiting at the Consumer Electronics Show (CES) this week, Intel Corp formally unveiled 16 new microprocessors based on the company's 45-nanometer (nm) manufacturing process, several of which are expected to turn up in products from Apple Inc. over the next several months.

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Sources familiar with Apple's plans for 2008 report that the company is eyeing a new mobile processor from Intel code-named Silverthorne for use in a new generation of handheld devices. That has broad implications for Apple's expanding role in consumer electronics, and holds out the prospect for the company to play the savior for a chip originally designed to power the second-generation of Microsoft's beleaguered UMPCs.

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Apple Inc. will form a closer bond with once-rival Intel Corp. early next year when it begins building a new breed of ultra-mobile processors from the chipmaker into a fresh generation of handheld devices, AppleInsider has learned.

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