[unfair]

I don't really understand why Apple would spend half a billion on buying chip manufacturers and paying their employees. What is the benefit for them to throw away profit and get into competition with part suppliers?

Seems like a poor business decision to branch so far from their core business model - especially in a field where you have to keep up with heavy competition. Haven't they always bought their chips from IBM(PPC) or Intel(newer Macs and ARM chips for iPhone), previous to this?

[qq66]

They're just trying to keep the best technology away from competitors. At their scale it's worth the money. Half a billion is nothing compared to iPod/iPhone/iPad profits -- if they can keep the technology out of competitors' hands for 6 months it's worth it.