Apple Considered Buying Intel’s Smartphone Modem Chip Business
After Intel left the development of 5g modem for Smartphone business, Apple is considering buying Intel’s smartphone model chip business. Intel and Apple have started the discussion this summer until the settlement of Apple and Qualcomm. Apple officially confirmed a new deal with Qualcomm, Apple is going to try something new apart from the smartphone business. Even after the acquisition of the Qualcomm by Apple, it is a possibility of the acquisition of Intel’s modern business by Apple with several Billion dollars.
After the report came out on the Intel’s earning of Q1 2019, they have confirmed that they will continue on the 4G LTE modems for their customers. They are also considering the models for upcoming iPhones releasing in 2019. After the discussion within the Intel’s board after the Qualcomm involving in the settlement with Apple, Intel’s CEO Bob Swan stated that they are leaving the 5G modem business. Although this statement seems like they are forcing Apple on the settlement, in reality, it may be the chance that taking for face-saving.
Apple has confirmed that they are going to develop their own iPhone modems within its production. Although having production of own modem by Apple could be good for the profit of the smartphone business. After the acquisition of the Intel’s 5G Modem Business, they could develop their own modem which will in return lower the price of iPhone production. Although the result of this effort will be reflected in the next few years, in case Apple succeeds in the smartphone business in upcoming years.
As 5G iPhones will be the next generation smartphones in upcoming years, acquisition of the modem business well eventually boost the business of Apple. Apple might eventually start producing 5G modems for other brands in order to expand their business.