Shulou(Shulou.com)05/31 Report--

According to foreign media reports, Apple is currently negotiating with Intel to acquire Intel's 5G modem business. Including the intellectual property rights and patents of the business, the total value of the transaction is expected to exceed $1 billion. The deal is expected to be completed as early as next week.

Off-and-off negotiations between Intel and Apple have been going on for about a year. In April, Intel announced that it would withdraw from the 5G modem business. Earlier, Apple and Qualcomm reached an agreement that Apple would again use Qualcomm modems on the iPhone.

Intel CEO Bob Swan (Bob Swan) recently clarified that Intel abandoned the modem business directly because Apple reached a settlement with Qualcomm, and without Apple as a big customer, the company "can't see the way forward."

Before Apple and Qualcomm reached a settlement, Intel became the only third-party modem supplier to iPhone in 2018. Apple has long been a major customer of Intel modems, while almost all other major Android phones rely on Qualcomm or develop their own solutions.

Apple reportedly judged that Intel could not provide a 5G modem for iPhone within a short period of time, forcing the company to reach a settlement with Qualcomm. Since then, Intel has been looking for buyers for its modem business.

Many market analysts say 5G technology is very important to Apple. When Apple will introduce 5G technology into iPhone as soon as 2020, it will promote a large-scale upgrade of iPhone.

A potential deal between Apple and Intel will give Apple 5G talent support, which could save years of research and development work. With global smartphone sales stable and a squeeze on iPhone, which has long underpinned its profits, Apple has been trying to develop chips to further differentiate its devices. Apple has hired a number of engineers and announced plans to open an office with 1200 employees in San Diego.

Although Apple has signed a new agreement with Qualcomm, Apple is already developing modems independently, gaining Intel's portfolio and experience, including working on 5G chips for iPhone, which is likely to accelerate Apple's development process and rid Apple of its dependence on third-party modems in the future.

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