On June 11 Patently Apple posted a report titled "Apple Reportedly still interested in buying Intel's Modem Division." The report noted that the talks came as Intel is considering the sale of its struggling 5G modem business in pieces. Apple is focusing on one of the strongest pieces of the modem business. While Intel’s modem group is spread across the world, its foundation is in Germany, where the chip maker Infineon is based. Any deal with Intel for the business would likely send hundreds of modem engineers to Apple."
Today it's being reported by CNBC that Apple is in advanced talks to buy assets from Intel’s modem chip business, potentially acquiring patents and staff valued at $1 billion or more according to the Wall Street Journal that is owned by Rupbert Murdock of News Corp (who also owns Fox News).
The deal could be announced as soon as next week, according to the report. Intel shares rose over 2% for the day and another 1% in extended trading on the news. Qualcomm, the leading smartphone modem maker, dropped over 2% after hours. Both stocks will fluctuate over the next 24 hours, so use the provided links to stay on top of the reaction.
Intel currently provides LTE modem chips for Apple’s latest generation of iPhones. But after Apple and Qualcomm settled a legal battle in April over patent licensing practices, the two companies announced that Apple would again start buying modem technology from Qualcomm. Hours after the settlement, Intel announced that it would no longer develop its next-generation 5G modem chip. For more, read CNBC report here.
Considering that Apple signed a six year deal with Qualcomm with a two year option, there's plenty of time for Apple to make a deal to their liking.
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