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Apple secures supply of G4 chips through 2008

Apple Computer said on Friday it has entered into a purchase agreement with Freescale Semiconductor that will secure it a source of PowerPC G4 microprocessors through the end of 2008.

Under the terms of the agreement, signed Aug. 22, Freescale is obligated to supply its microprocessors for orders placed by Apple through Dec. 31, 2008.

However, 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 company said in a regulatory filing.

Apple is expected to transition its entire Macintosh product line to Intel-based chips by 2007, but would need a source of PowerPC G4 chips for repairs.

Through its Apple Care extended warranty service, the company sells 3-year coverage plans that run well into 2008.