Rumor has it that Apple may be closing on a big deal to acquire Intel’s 5G modem business for $1 billion.
Apple initially had discussions with Qualcomm but the negotiations didn’t get anywhere, and now the company appears to be turning to Intel. According to The Wall Street Journal, a deal could be announced in the upcoming weeks.
Apple to Buy Intel’s 5G Modem Business
In April this year, Intel announced that it was leaving the 5G mobile modem business, after the news of Apple and Qualcomm reaching a settlement. Intel CEO Bon Swan stated that Intel’s decision was based on Apple-Qualcomm’s settlement as the company didn’t see a future without Apple as a customer.
“In light of the announcement of Apple and Qualcomm, we assessed the prospects for us to make money while delivering this technology for smartphones and concluded at the time that we just didn’t see a path,” Swan said in an interview with The Wall Street Journal.
The details surrounding the deal between Apple and Intel are still insufficient but it is believed that the sum of the settlement could reach $1 billion. The decision should be finalized as early as next week, if the negotiations go as planned.
Apparently, after the knowledge of Apple and Qualcomm debates, Intel started looking for a buyer for its modem business. It is noteworthy that Intel became the sole third-party modem provider for last year’s iPhone models, with Apple being Intel’s major customer for modems.
Android devices largely rely on Qualcomm or other in-house products.
There are also reports that Apple is working on its own models, similar to its own CPU platform that has resulted in iPhone and iPad’s proprietary A-series chipsets. The addition of Intel’s portfolio to the process, including its 5G chips for iPhones, could improve the development process and make Apple independent of third parties.
Milena Dimitrova
An inspired writer and content manager who has been with SensorsTechForum since the project started. A professional with 10+ years of experience in creating engaging content. Focused on user privacy and malware development, she strongly believes in a world where cybersecurity plays a central role. If common sense makes no sense, she will be there to take notes. Those notes may later turn into articles! Follow Milena @Milenyim
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