Apple in talks to buy Intel modem business for $1 billion

Posted on Tuesday, July 23 2019 @ 9:40 CEST by Thomas De Maesschalck
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Word is going around that Apple is in advanced talks to buy Intel's smartphone modem chip unit. WSJ claims the former is offering $1 billion or more for the unit, a portfolio of patents, and staff. If things go smoothly, a deal could be reached in the next week.

The sale of the modem business would give Apple an in-house modem chip, while for Intel the appeal is that it can rid itself of an unsuccessful unit that has been bleeding cash.
It would give Apple access to engineering work and talent behind Intel’s yearslong push to develop modem chips for the crucial next generation of wireless technology known as 5G, potentially saving years of development work. Apple has been working to develop chips to further differentiate its devices as smartphone sales plateau globally, squeezing the iPhone business that has long underpinned its profit. It has hired engineers, including some from Intel, and announced plans for an office of 1,200 employees in San Diego.
Intel no longer plans to compete in the smartphone modem market, but is still working on 5G solutions for other markets like connected devices.


About the Author

Thomas De Maesschalck

Thomas has been messing with computer since early childhood and firmly believes the Internet is the best thing since sliced bread. Enjoys playing with new tech, is fascinated by science, and passionate about financial markets. When not behind a computer, he can be found with running shoes on or lifting heavy weights in the weight room.



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