What is the PWRficient processor from P.A. Semi?

I think the most important aspect of this purchase is something you missed. Lots of new applications--even ones from Apple--are for Intel only. Supposedly, developers are moving to the Mac because they're familiar with the Intel platform. By moving back to the PowerPC, they are either saying that what they'll use the chip for will NOT run a wide range of applications, or that they've developed a way for PowerPC chips to run as if they are Intel chips.

I don't think this has anything to do with Macs and everything to do with iPhones and iPods. Moving those systems to newer ARM processors designed by PA could be one goal. Or Apple could change the iPhone processor to Power, and since nothing is specifically developed for ARM yet, then a transition from ARM to Power on the iPhone would likely be relatively easy.

I doubt apple would ever go back to Power for the simple reason that Intel is able to decrease apple's costs and guarantee high volume production and ramp speeds. Also it would destroy the current mindshare and marketshare expansions Apple has made by getting rid of windows compatibility.

well as both arm and powerpc are risc based and the head of P.A used to work with arm chips, AND since apple have been talking to them for nearly 2 years, maybe they were waiting to see if these techniques would transfer to arm cpus before purchasing the company.

This is very likely to be a long-term strategic move by Apple, in the direction of improving its talent pool, and not necessarily an indication of what's going to be in impending product releases.

Dobberpuhl was a lead designer on the DEC T11 processor, where he developed design techniques to do more with much less silicon; the DEC Alpha, where he helped develop the design methodologies that today give us multi-GHz chips; and the StrongARM processor, which took both of these strengths and created an ARM variant that is at the same time significantly more powerful and less power-hungry than its rivals.

Consider how valuable it would be for Apple, in this time where mobile computing is the financial future of the industry, to have this talent in house.

Even if they don't plan to immediately deploy the PWRFicient, the ability to develop that CPU and associated custom chipsets into future products (iPhone 3.0? iTablet?) and then have them be *exclusively* available to Apple, contains in it the potential to take Apple from the position of smaller influential player, to dominant consumer-electronics powerhouse.

I see this move as being all about the 10-year potential. That it might have 1-2-year payoff by putting PWRFicient in upcoming products is merely icing on the cake.

People are forgotten that most of the applications for Mac are now in Universal standard, instead of PowerPC or Intel. Apple is playing safe for both party instead of one. If Apple do not move to Intel a few years ago, Mac OS 10.x will not be moving so fast now, this is a business strategy, it will force most of the hestitated developer companys to move faster to design Universal code for Mac OS 10.x. So, when time is right and opportunity is here, why not Apple to buy other processors company (PA Semi) with all great scientists availabile to move further and faster for his great products and ideas, helping the existing teams to cooperate and balance the forces in both company (Apple and Intel). This is a great move. Steve, well done.