Apple Considers Buying Intel’s Smartphone-Modem Chip Business
Apple is reportedly negotiating with Intel to buy its 5G smartphone modem business, The Wall Street Journal wrote on Tuesday, July 23, citing its sources.
According to WSJ, the amount of the deal which has been discussed for almost a year might reach $1 billion. The interlocutors also revealed that the agreement might be concluded next week.
The deal might be crucial for Apple, as the tech giant is seeking to be at the forefront of 5G mobile sector. By purchasing Intel's business the company could save years required to develop its own chips, WSJ stated.
In the meantime, Intel is also interested in the deal, as the chip manufacturer is willing to get rid of its unprofitable business and focus on developing 5G technologies for other devices. According to WSJ, currently, Intel is losing up to $1 billion per year on smartphone chip manufacturing.
In April, Intel announced it is quitting 5G smartphone modem business in order to focus more on 4G and 5G modems for personal computers and smart home devices.
Earlier this month, Intel was rumored to hold a major auction for over 8,500 of its 5G patents. While 6,000 of them were reportedly related to the company’s cellular IP portfolio, including 3G, 4G, and 5G standards, the other 1,700 documents were dedicated to “wireless implementation technologies.”