The Wall Street Journal stated on Monday that Apple is in advanced stages of discussions to purchase the property from Intel’s modem device company, possibly purchasing patents and employees priced at $1 billion or more.
Apple’s decision to do well with Qualcomm was largely driven by Intel’s failure to deliver a 5G-capable smartphone modem in time to meet Apple’s roadmap for a 5G iPhone release.
Apple may be agreeing to purchase up Intel’s $1 billion deserted smartphone modem company, with the Wall Street Journal stating today that an agreement could be announced as soon as next week.
According to individuals acquainted with the issue, Apple Inc. is in sophisticated discussions to purchase Intel Corp.’s smartphone-modem device company, a step that would jump-start the effort of the iPhone maker to seize charge of creating critical parts powering their devices.
Intel presently offers the recent batch of iPhones from Apple with LTE modem chips. But after Apple and Qualcomm resolved a legal fight over patent licensing procedures in April, both businesses announced that Apple would again begin purchasing Qualcomm’s modem technology.
Hours after the settlement, Intel announced that its next-generation 5G modem device would no longer be developed. Several analysts have said that 5G is Apple’s critical innovation that could boost upgrades when the system is incorporated into iPhones, possibly as quickly as 2020.
Qualcomm continues to build its own 5G chip, and job listings suggest that Apple hires staff to make its own 5G modem, although it is uncertain whether it is near to creating it an iPhone.
If the acquisition occurs, the enhanced readiness of Apple to accept big multibillion-dollar purchases with its $225 billion war chest in money and marketable securities would again be underlined.
Apple’s largest agreement to date was Beats Electronics and Beats Music’s $2.6 billion acquisition in 2014. Apple purchased employees and patents last year for $600 million from the British chipmaker Dialog Semiconductor.