I just got curious about this and looked for an explanation. Intel does a lot of forecasting and their predicted data was flawed. This article explains it succ

I just got curious about this and looked for an explanation. Intel does a lot of forecasting and their predicted data was flawed. This article explains it succinctly: http://appleinsider.com/articles/13/05/16/intel-chips-could-have-powered-first-iphone-ceo-otelini-says http://appleinsider.com/articles/13/05/16/intel-chips-could-... Intel CEO Paul Otellini on the iPhone negotiations: "At the end of the day, there was a chip that they were interested in that they wanted to pay a certain price for and not a nickel more and that price was below our forecasted cost. I couldn't see it. It wasn't one of these things you can make up on volume. And in hindsight, the forecasted cost was wrong and the volume was 100x what anyone thought."