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So perhaps all those rumors about Apple wanting to throw all of its eggs into Intel's basket are true after all.
But, there is a small but crucial technical issue here - the problem is that the current generation of Atom is not quite right for the iPhone as it gives off too much heat to be useful in a smartphone-sized device.

To add to this rumour, reports abound about another, newer version of the atom chip that is in the works
However any Atom-based iPhone would need to be larger, and maybe an Atom-based tablet-like device in is the works, but Apple being Apple would not confirm nor deny this bit of tattle - not even on the pain of death.

Reports from Intel Germany indicate the company is looking into the new Atom chip report, but neither the name nor identity of the mysterious German-based Intel source could be verified.

It seems the iPhone has created a mystique and enigma all on its own- a bit like Apple CEO Steve Jobs really- but maybe that what Apple wants- after all, with all this publicity, by the time it is released, whether with an Atom chip or not, the word iPhone could well become part of our everyday vernacular.