ARM chips, including the current Cortex A8, power the iPhone 3GS, iPod touch G3, and form part of the A4 system-on-chip for the iPad — add that to some whispers and we get the full on rumor that Apple is in talks to buy them out.

Here’s where it gets really interesting — ARM chips power a slew of other devices as well, including those running Android and Palm.

Rumors of Apple buying desktop chipmaker AMD were floated earlier in the week, so who knows what if anything is really going on here, but tying up a major mobile CPU maker and locker out your competition must hold a certain appeal for Apple (whose already a major licensor of ARM). With $41 billion in the bank, even the likely $8 billion price tag isn’t out of the question.

We’re doubting it at the moment, but what do you think? They’ve already bought PA Semi and may have bought ARM design company Intrisity, and Google just bought Agnilux. Should Apple buy ARM outright?

[London Evening Standard via MacRumors]

Apple in talks to buy ARM? is a story by TiPb. This feed is sponsored by The iPhone Blog Store.

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Since Apple currently dominates the mobile app space, bolstering their cut of profits with a cut of in-app advertising is likely good business for them. It’s all about the eyeballs, and if those eyeballs are locked on iPhones and iPod touches, why let Google gobble it all up?

If rumors are true that Google bought AdMob out from under Apple (much like Apple bought online music streamer Lala out from under Google), then switching targets to an AdMob competitor couldn’t have been entirely off the radar, now could it? (Especially with — yes more rumors — of Google now turning towards Spotify for their music fix).

Apple and Google certainly look to be getting even more up into each others business, and that should make the expected Nexus One announcement later today, along with Apple’s expected January 27 event, and the whole of 2010, a lot more exciting!

Google, which has nearly $22 billion in cash, has been particularly active. In addition to AdMob, Google bought display-ad company Teracent Corp. and Internet-phone provider Gizmo5 Technologies Inc. in November. Last week it purchased AppJet Inc., a maker of online collaboration software.

Apple, which has $34 billion in cash, has been exploring buying iPhone-related technologies that it doesn’t yet have, say people familiar with the matter. Its moves are generating particular attention because Apple has made fewer acquisitions than other companies of its size.

All this follows Google’s launch of Android OS for Smartphones, Chrome OS for netbooks, CEO, Eric Schmidt, leaving Apple’s board of directors, and Apple denying Google Voice and Google Latitude entry into the iPhone App Store.

Again, TiPb just wants to make sure users are the ones that benefit from great smartphones and services in the end. In a battle between King Kong and Godzilla, it’s important we’re the audience enjoying a great experience, and not the city folk fleeing as the monsters stomp all over us.