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The US business newspaper reports that Apple has tentatively agreed to use Intel chips, which power a majority of the world's PCs. Currently Apple uses Power PC processors from IBM and Motorola. However switching to Intel would ensure that it could keep pace with the performance of Windows-based machines.

Despite significant performance gains in recent years, the PowerPC platform still falls short of the outright speed claims of Intel and its main rival AMD. Although this may not affect real world performance - too many other factors have to be taken into consideration - it has a big influence on consumers' perceptions. Recently, Apple was unable to fulfil a promise to have 3GHz G5 chips within a year of the unveiling of the G5-based Power Mac.

Moreover switching to Intel could result in cost savings and, consequently,

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further price cuts. Intel also has power saving technologies that could be deployed in Apple's key notebook models, the iBook and PowerBooks.

Any decision to go with Intel will require some rewriting of the OS X code. However it is highly unlikely that any changes will enable it to run on any Intel-based PC; Apple will ensure that it is hardware specific though hackers would doubtless be keen to get their hands on it.

Rumours of secret versions of Mac operating systems that run on Intel hardware have been circulating for years. They have been given some substance by former Apple employees who have suggested that it remains a fall-back option should the PowerPC platform fail.

Intel declined to comment, while Apple said the news should be placed 'in the category of rumour and speculation'.

As the WSJ points out, these discussions could merely be sabre waving on Apple's part, a reminder to IBM that its relationship with Apple is not set in stone. Not only has it not delivered the promised 3GHz G5, but it has yet to produce one cool enough to run in a laptop.

Of course there is every chance that this is all a smokescreen and next month, at Apple's Worldwide Developer Conference., CEO Steve Jobs will unveil a 3GHz Power Mac and a G5 PowerBook. Two years ago, there was similar talk of a tie-up between Apple and AMD, though nothing materialised.