The executive also implies that the equipment may be a new iPhone model, though previous rumors from AppleInsider have suggested a tablet-like device that would be used for general computing. Intel's current version of the Atom is also considered by many to be too hot and power-demanding for devices small enough to be used as cellphones; the basic 800MHz Atom chip is currently slated for ultra-mobile PCs as well as a new class of device known as a Mobile Internet Device, which is usually built for a combination of Internet access and media playback.

Intel itself has instead suggested that the Atom's replacement next year, codenamed Moorestown, will be more suitable to smartphones with both reduced power and heat as well as a reduced footprint. At a previous company Developer Forum, Intel revealed a prototype of an iPhone-influenced device that would use Moorestown but in a stretched-out form factor meant for carrying in a bag rather than a pocket.

The report also suggests that Apple has no plans to abandon the iPhone as-is and refers to common speculation that the company is bound to launch an updated 3G version at next month's Worldwide Developer Conference.