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Here’s Why Apple Inc. (AAPL) Is Always Going To Choose Intel Corporation (INTC)

Brian Krzanich, Intel Corporation (NASDAQ:INTC) CEO, is quite confident that Apple Inc. (NASDAQ:AAPL) will always be choosing his company’s chips.

In an interview with CNBC, he outlined why he thinks Apple Inc. (NASDAQ:AAPL) favors Intel Corporation (NASDAQ:INTC) and why the relationship of the two companies is “strong”.

“Here’s my perspective. Our relationship with Apple is strong and their products are great. Apple is always going to choose the supplier who is going to provide them with the most amount of capability and innovation for them to build on, for them to innovate,” Krzanich said.

Krzanich was reacting to recent news that Apple Inc. (NASDAQ:AAPL) may somehow ditch Intel Corporation (NASDAQ:INTC) as a supplier of the chips that run its popular Mac computers and MacBook laptops.

“They’re a company based on innovation. So our job is to continue to deliver parts that have that capability, that are better than our competitors and then they want to use our parts. I wake up every morning making sure that across the board, whether its Apple or Lenovo or Dell or any of customers, we have to provide the most competitive part – performance, price, reliability, all of those factors,” the chief executive said.

Apple Inc. (NASDAQ:AAPL) could have a stronger relationship with Intel Corporation (NASDAQ:INTC) now had Krzanich’s predecessor, Paul Otellini, fought to make the chips that would run the Apple iPhone. Even though apparently his gut told him that Intel should make the iPhone processor, the company passed on the opportunity because the economics didn’t make sense for the volume of iPhones the company foresaw being sold.

Intel, is INTC a good stock to buy, Brian Krzanich, Apple, is AAPL a good stock to buy,

John A. Levin’s Levin Capital Strategies reported ownership of about 1.81 million Apple Inc. (NASDAQ:AAPL) shares by the end of the third quarter of 2014. Jim Simons’s Renaissance Technologies owned about 2.98 million shares of Intel Corporation (NASDAQ:INTC) by the end of the same quarter.