Apple Is Rumored To Be In Discussion To Buy Intel's 5G Modem Business For $1 Billion

It may be true that Apple is finalizing a deal to acquire the abandoned smartphone modem business from Intel for $1 billion, the transaction may be made public soon.

It was back in April this year that Intel announced that it was leaving the field of the 5G modem. Prior to that, Apple came to a rather unexpected settlement with Qualcomm which would witness Apple with using Qualcomm's modems for its phones. It was later clarified by Bob Swan – Intel’s CEO – that the aforementioned settlement was directly responsible for the departure of the Intel from the modem business as the company simply did not see a way for the field forward.

It is reported that Apple supposedly concluded that Intel was not fit to provide a 5G modem for the iPhone in a timeframe that went well with the company’s plan to launch 5G devices. The decision prompted the company to conform with Qualcomm after multiple controversial legitimate disputes. Now, it is reported that Apple’s deal to acquire the aforementioned part of Intel with a $1-billion investment in staff and patents could be reached soon.

Intel is said to have been in search for buyers for its abandoned modem field following the settlement between Apple and Qualcomm. Turns out, Apple is a suitable buyer for Intel. Before the deal between Qualcomm and the Cupertino giant, Intel was the only third-party provider for iPhone’s 2018 models. Apple, meanwhile, has been the only leading customer of Intel for its modems. Almost every other major smartphones using Android relies on in-house solutions or Qualcomm’s modem.

The tech giant had already supposedly working on their own in-house modem, which shares some similarities with its current internal CPU platform that powers the A-series chipsets found in Ipad and iPhone. With Intel's experience and portfolio, the Cupertino giant might speed up the process to operate as an independent modem provider for itself.