Apple Might Acquire Intel's 5G Modem Business As Early As Next Week

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If a report by 'The wall Street Journal' is to be believed, Apple might pay $1 billion or even more to Intel for chipmaker's 5G modem business in the coming week. The hefty amount will cover all the patents and the personnel who worked in the 5G smartphone modem chip unit at Intel. The acquisition will allow the Cupertino tech giant to engineer in-house phone communication components for the next year's iPhones.

Apple Might Acquire Intel's 5G Modem Business As Early As Next Week

 

Intel abandoned the 5G modem chipset business in April, after Apple settled a legal battle with Qualcomm. Qualcomm persuaded a U.S. trade agency to consider import ban on iPhone 7,8 and X that use Intel made chips. The legal dispute was settled with Apple using the Qualcomm-made chipsets once again.

Apple Might Acquire Intel's 5G Modem Business As Early As Next Week

We got a chance to meet Intel's team at ESL Gaming league in Mumbai in May 2019. On being asked about the Intel's decision to stop producing the 5G chipsets, the company denied to give a straight response. The team did mention that Intel will continue to innovate and work towards the 5G chipsets technology as it is going to be the foundation of modern communications in mobile devices.

Apple Might Acquire Intel's 5G Modem Business As Early As Next Week

 

Notably, Huawei has been long working in the 5G field. The Chinese tech giant introduced 5G multi-mode chipset Balong 5000 in the first quarter of 2019. Along with next-gen. CPU, the company showcased Huawei 5G CPE Pro, the first commercial 5G device powered by the chipset.

With the acquisition in discussion, Apple's 5G dreams will also get new directions. The company won't have to rely on outside suppliers to deploy 5G architecture for the company's future products. The next wave of iPhones might feature the 5G modems developed in-house by using Intel's technology.

The talks of the possible acquisition by Apple have also started showing an impact in the trade market. As per a report by cnbc.com, Intel shares rose over 1% in extended trading, whereas Qualcomm's shares dropped over 2%. There was no impact on the shares of Apple as such.

5G is going to be the future train that every tech giant plans to board. Qualcomm is intensly working on 5G-enabled chipsets that will power the new generation mobility devices. Huawei has already given us a good glimpse of 5G powered devices and IoT setups. Apple don't want to be left behind and will ensure the coompany develops 5G infrastructure to stay in the competition.

We will keep a close eye on the Apple-Intel deal in the coming week as it is going to shape up the future of 5G-enabled devices for masses.

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