Apple Close To Buy Out Intel’s Smartphone Modem Business

Apple Close To Buy Out Intel's Smartphone Modem Business

                      Apple has long been fighting with Qualcomm, one of the largest chip makers in the world. There have been a number of disputes between both the companies and Apple has turned aggressive. You might be aware of the legal cases which are going on between both the companies. Billions of dollars are at stake with the legal disputes getting intensified.

According to sources, Qualcomm has denied selling its new 5G chip to Apple. This has started a new dispute altogether because Apple has to upgrade to the latest network in order to remain in the market. Hence, it is relying only on Intel to provide 5G chips. Apple has relied on Qualcomm for the 4G LTE chip and they have used it in all the iPhones which were released in 2018.

The biggest fear of Apple is that Intel would need time to deliver the 5G ready chips and this may result in the possible delay of the 5G phones. There are a number of companies which have already announced their 5G smartphones and iPhone is still struggling to find the supplier. Hence, the company has got very aggressive now.

Plot Twist

On 7th April, Intel had announced that it is ready to supply the 5G chip to apple and all of them will be delivered on time. However, some new developments took place in a few days.  According to the sources, the San Diego case was dropped has Apple agreed to pay a disclosed amount to Qualcomm. It is believed that Apple paid $4.5 billion in order to get into a six years agreement with Qualcomm. This agreement and shares that the company will supply 5G ready chips to Apple.

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Later in the day, Intel announced that the company has planned to quit the 5G modem business. Besides, started that Apple is going to acquire Intel’s smartphone modem business. If this deal happens, the dream of Apple will be fulfilled. Apple has long dreamt of producing their own modems.

Apple May Buy Out Intel’s Smartphone Modem Business

The Wall Street Journal reported that Apple is in a very advanced stage to make this deal happen. It is expected that the deal will be a big one for the company. The value of the Apple-Intel deal is expected to be more than $1 billion. This is going to be one of the biggest acquisitions of apple in the recent few years.

We all know that Apple regularly acquires different technology companies. However, they are relatively cheaper. The deal is going to place an apple in an advanced position in the industry. The share price of Qualcomm dropped 1.8% after the news was made public by various Business media houses. Apple has $113 billion in cash, as of the last fiscal report.

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About the Author: Naman Dhyani

Naman is a dedicated writer who is always ready to take new challenges to enhance his quality of work and efficiency. He loves to explore things until he reaches the source. He believes that his fingers are destined for the keyboard and his heart solely for the readers