Apple Reportedly Planning to Acquire Intel’s Modem Business for More Than a Billion Dollars

Apple could be purchasing Intel’s modem business as early as next week. A new report from the Wall Street Journal claims that Apple and Intel are in “advanced talks” to acquire Intel’s smartphone modem business.

The acquisition would give Apple access to all of Intel’s talent that’s worked on the company’s modem business for years. The deal would also give access to all of Intel’s patents which would be critical for Cupertino to build its own smartphone modems.

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The $1 billion+ deal makes a lot of sense for Apple. The company has had a big fallout with Qualcomm recently, and Intel also pulling out of the 5G modem business has slowed down Apple’s plans for getting 5G on the iPhone. With leading Android phone makers–including the likes of Samsung–already starting to sell 5G phones, Apple should be in a rush to get 5G on the iPhone.

Details about the acquisition are still kind of unclear, though that will probably be all clear once both the companies make it official. And with WSJ saying the companies could reach an agreement as early as next week, we won’t have to wait too long.

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Conversation 7 comments

  • bob_shutts

    23 July, 2019 - 9:26 am

    <p>Woot!</p>

  • glenn8878

    23 July, 2019 - 10:27 am

    <p>I wonder if the modem patent deal will bleed into CPUs. Maybe Apple can make something out of it, but it will take awhile.</p>

  • jchampeau

    Premium Member
    23 July, 2019 - 10:54 am

    <p>I think you mean "falling out," unless "fallout" means something different in your part of the world. And I think you might have forgotten that Apple and Qualcomm <a href="https://www.thurrott.com/apple/205147/apple-and-qualcomm-settle-sweeping-patent-suits&quot; target="_blank">settled their disputes</a>.</p>

  • MikeGalos

    23 July, 2019 - 12:49 pm

    <p><em>"</em><em style="color: rgb(0, 0, 0);">The acquisition would give Apple access to all of Intel’s talent that’s </em><span style="color: rgb(0, 0, 0);">[sic]</span><em style="color: rgb(0, 0, 0);"> worked on the company’s modem business for years.&nbsp;</em><span style="color: rgb(0, 0, 0);">"</span></p><p><br></p><p><span style="color: rgb(0, 0, 0);">No. It gets the ones Apple wants to keep for only as long as these former Intel employees feel like staying as Apple employees. In acquisitions, when the acquired company was doing fine, frequently the key people jump ship as soon as they can. It isn't like slavery where you bought the employees when you bought the plantation.</span></p>

  • bbold

    23 July, 2019 - 12:50 pm

    <p>A billion dollars is nothing to Apple. Apple is currently worth around 750 billion dollars, so this is like 1/750th of their profits. I think it's a wise idea, if Apple has the capacity to innovate faster than Intel? Only time will tell.</p>

    • Chris Payne

      23 July, 2019 - 1:15 pm

      <blockquote><em><a href="#444486">In reply to bbold:</a></em></blockquote><p>To be pedantic, them being worth $750bn does not mean they have $750bn in profits. In addition, they currently have a market cap of $955bn, not $700, and they only have about $80bn of cash on hand.</p>

  • dontbe evil

    23 July, 2019 - 2:46 pm

    <p>I bet was their plan since the begin</p>

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