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Apple Tipped To Buy Intel Smartphone Modem Business

iPhone manufacturer, Apple, is reportedly in ”advanced talks” to purchase Intel’s smartphone modem chip business – just months after Intel axed its 5G phone component plans.

Back in April, Apple announced its truce with Qualcomm, ending a length licensing dispute, and concerns over its 5G smartphone launch.

Apple was reportedly banking on Intel 5G chips, however, reports claimed the company was struggling to perfect the component in time for 2020 iPhones – prompting its settlement with Qualcomm.

The Apple-Qualcomm settlement news was followed by Intel’s decision to axe its 5G smartphone modem plans:

“We are very excited about the opportunity in 5G and the ‘cloudification’ of the network, but in the smartphone modem business it has become apparent that there is no clear path to profitability and positive returns,” claimed Intel CEO, Bob Swan, at the time.

Apple will remain with Intel chips for 2019 iPhones (as it’s too far along the production line) with Qualcomm tipped for 2020.

According to the Wall Street Journal, Apple’s purchase of Intel’s smartphone modem division would encompass a US$1 billion plus deal, including a patent portfolio and several staff.

The acquisition provide Apple access to Intel’s 5G phone modem engineering work, and is tipped to propel future smartphone efforts.

The talks have reportedly been on-and-off for about a year, with interest from a number of interested buyers.

For Intel, the deal would allow it to shell a division that has continued to weigh on financial reports.

Apple is scheduled to release Q3 earnings next week, with Intel due a few days prior.

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