Apple reportedly Buying Intel’s Modem Business for $1 billion

A report by the Wall Street Journal claims that Apple is planning to buy Intel Corporation’s smartphone modem chip business and are currently in talks to lock the deal. Apple will buy Intel’s abandoned smartphone modem business for a whopping $1 billion. The confirmation might be announced by next week. Intel themselves clarified the “abandoned modem business” saying that Apple and Qualcomm’s settlement rendered their 5G modem business incomplete as they couldn’t see any path without the Cupertino giant.

Apple reportedly Buying Intel's Modem Business for $1 billion
Image source: VentureBeat

Intel, in late June, was all set to auction 8,500 of its patents which received strong interests. It couldn’t go forward with the auction due to the exclusivity which stated that the company had entered into with one party and that doesn’t allow other bidders to take part in the auction.

The Wall Street Journal report states that “the deal would give Apple access to engineering work and talent behind Intel’s years-long push to develop modem chips f the crucial next generation of wireless technology known 5G potentially saving years of development work.

Apple has been getting modems from firms like Intel and Qualcomm which clears the air why a 5G iPhone might come much later than its Android counterparts. IAM media states that Apple could also be interested in Intel because of the 6,000 patents they have which are related to 3G, 4G, and 5G cellular standards. Moreover, there are over 1,700 patents which are ‘wireless implementation technologies’ related

Apple has already settled a deal with Qualcomm and adding Intel to its profile could allow Apple to take charge of the third party for its modems in the near future. After the Apple-Qualcomm deal, Intel was on a lookout for a buyer for its modem business and who better than Apple? Well, firstly, Intel became the only third-party modem provider for the 2018 iPhones. Secondly, Apple has been Intel’s influential customer for modems; Android manufacturers relied heavily on Qualcomm and other in-house options.

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