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I have to think the "fast" part of that was the bigger problem. There is no way Apple was going to wait a few years for Intel to build and ramp fabs to make the iPhone chips.
I agree that was probably the most significant problem for Apple. But most of what I heard about was money and risk. I wish Intel took product design decisions as seriously as they took fab construction decisions back then.
It's true that a semiconductor manufacturing plant cannot be built in just one or two years...
The story surrounding Intel and the iPhone is a strange one...