Apple to buy Intel's 5G Modem biz for $1Bn

Apple is reported to be in talks with Intel to acquire its non-performing modem business though it is not officially announced yet.

As per the reports published in media, the deal size is estimated to be valued at $1 Billion. If the deal goes through, it can provide Apple access to some of the key patents and technologies of Intel in 5G Modem's tech stack. Deal would involve both the movement of technology and human resources so that Apple can build on top of it.


Earlier in April, Intel had announced that it would exit its 5G Modem business since it doesn't have a clear direction or path forward to profitability in that space in the foreseeable near future. Till the time of announcement, Intel had Apple as the  one and only customer for its 5G modem chips.

Apple has been strategic enough to own each and every technology which goes into its products. Till now it has been sourcing its 5G modem chipsets from Qualcomm after entering into a long term agreement with it to buy from Qualcomm. But it is very well aware that a revolutionary technology like 5G could be a long term game.

In the recent few years, Apple has been criticized a lot for not providing any substantial upgrade on its flagship models. Apple plans to rework on this by having a better control over the latest 5G technology. If it is able to bring in the capabilities of 5G on its devices early in the market, it can very well retain its leadership position which seems to be going away to Chinese handset makers since a couple of years.

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