Apple would be using Intel processors if it wasn't for one small thing - mighty Chipzilla sold its XScale business to Marvell Technologies.
A chief of Chipzilla Italy told Italian business magazine Il Sole 24 Ore that Apple still shares a link with Intel, since it's using Intel-developed XScale chips. However, iPhone still comes with Intel's flash memory - the same one that is being built into iPod Nanos. µ