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Home Hardware

Apple Reportedly Close To Finalising Purchase of Intel 5G Modem Business

by John Law
July 23, 2019
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Apple is reportedly in advanced talks with Intel about buying latter’s 5G mobile modem business. The deal, if and when agreed upon, will see Apple snatching up Intel’s modem business lock, stock, and barrel, at a tune of US$1 billion (~RM4.12 billion).

According to WSJ, the US$1 billion deal would include a portfolio of patent and staff members currently in the employ of the 5G modem division. For Apple, the acquisition basically translates to access to work and technology. That will essentially further its endeavour in creating its own in-house 5G modems. Presumably for future iPhone devices.

Intel first announced its exit from the 5G mobile modem market back in April this year, saying that it was no longer able to “determine positive impact or profitability from the smartphone modem business”. However, unofficial rumours suggest that Intel was struggling to go up against a Qualcomm, especially after the latter agreed to a six-year licensing agreement with Apple.

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For the record, Intel’s modem business wasn’t technically built from scratch. The company acquired Infineon Technologies’ modem business back in 2011 for a tidy sum of US$1.4 billion (~RM5.77 billion) and built it up from there

(Source: WSJ via The Verge)

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