Apple is reportedly in superior talks to take over Intel’s smartphone modem enterprise for about $1 billion, with an official announcement on this regard anticipated as quickly as the following week.
A report from the WSJ reveals that talks on a possible deal began many months in the past when Apple was nonetheless concerned in a authorized conflict towards San Diego-based chipmaker Qualcomm.
Apple finally settled the dispute with Qualcomm and negotiations over shopping for Intel’s smartphone modem unit acquired suspended. Intel additionally introduced it will exit the smartphone modem enterprise, with Apple to use Qualcomm chips for its future-generation iPhones.
The cited supply reveals that Intel reached out to Apple to resume talks shortly after the Cupertino-based tech large settled its lawsuit with Qualcomm, and the negotiations have since progressed considerably.
Apple attempting to cut back reliance on third events
By the seems of issues, Intel has thought-about discussing promoting its smartphone modem unit to different corporations as properly, however finally targeted on talks with Apple because it sees the Cupertino-based tech large as “the most logical buyer,” as per the linked report.
Apple hasn’t clearly commented on the negotiations with Intel, however taking up its smartphone chip enterprise would certainly assist the corporate cut back reliance on different corporations and develop extra elements in-house.
Apple has been attempting to do that for a very long time, and the authorized conflict with Qualcomm was dwelling proof the corporate wanted to speed up its efforts on this regard. By taking up Intel’s smartphone chip unit, which incorporates not solely employees but in addition patents, Apple may save what the supply calls years of improvement work, finally getting nearer to constructing its personal iPhone modem sooner than anticipated.
The firm has already been very energetic on this aspect of the market, because it desires to open a devoted workplace in San Diego who would make use of 1,200 staff and focus totally on chip improvement.