Apple is reportedly in the process of closing a deal to buy Intel’s smartphone modem business for a billion dollars. This follows Intel’s announcement to exit the 5G mobile modem business earlier in the year.

 

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Apple reached an agreement earlier in the year that it will return to using Qualcomm’s modems in its phones. The CEO of Intel, Bob Swan, made it clear that Intel quit the modem business because of the settlement Apple had with Qualcomm. They said they could not go on with the company without Apple patronage.

 

Reports say that Apple did not think Intel could provide a 5G modem for the iPhone in time for Apple’s 5G smartphones. This then made Apple go forward with a deal with Qualcomm despite their history of legal disputes over the years.

 

 

Latest reports now suggest that Apple looks to acquire the 5G portion of Intel’s business. The acquisition will cover staff portfolio and patents valued at a billion or more dollars. The news is also that they could not reach this deal in a week.

 

Apple buying into Intel technology

Intel had been looking for a buyer for its modem business after it got wind of the deal between Apple and Qualcomm. Before this deal, Intel was the sole third-party modem provider for the 2018 models of iPhones. Apple had also been Intel’s only major modem customer because other major Android phones worked with Qualcomm or their own in-house solutions.

 

This deal with Intel, if it follows through, looks like it will be to the advantage of both parties. There were also reports that Apple tried to work on developing its own in-house modems too. It was meant to work like the internal CPU platform that worked on the iPhone and iPad.

 

Apple acquiring Intel’s technology will make it easier and faster for Apple to operate independently and have its own 5G modem chips.