Apple to buy Intel’s 5G modem business for $1 billion, WSJ reports

The announcement about the deal is expected to be made as early as next week.

You thought that two leading tech giants, Apple and Intel would just part ways for 5G business and things will cool down eventually. Well, this is not the case, at least according to a new report by The Wall Street Journal that claims Apple may be closing in on a deal to buy up Intel’s now abandoned 5G smartphone modem business for $1 billion.

The top chipmaker in America, Intel has been a terrible supplier for America’s leading smartphone giant Apple, ever since the company failed to provide a 5G modem for an iPhone in a timeframe that worked with Apple’s plans to release 5G-ready smartphones. And it was also due to Intel’s wrongdoings that Apple had to make a surprise settlement with Qualcomm that would see Apple once again return to using Qualcomm’s modems in its iPhones.

As of now, WSJ reports that 5G is a critical technology for Apple that could help a major increase in upgrades when the technology is integrated into iPhones in 2020. The cost-effective 5G iPhones are also likely to generate more revenue for Apple as the company implies perfection in every department.

In a nutshell, the report has affirmed that Apple was so fed up with Intel’s modem struggles that it had no choice but to get relief from its legal headaches by settling with Qualcomm. And now, since the company is looking forward to buy leftovers of Intel’s 5G modem business, we are expecting to get 5G-powered iPhones as early as September next year, the time whenever other Android-powered mobile company would have already achieved this milestone.

Meanwhile, it must be noted that Apple’s frustrations with Intel’s modem efforts began much earlier than some previous reports had pointed out. Those involved production struggles with modems for the iPhone XS, iPhone XS Max, and iPhone XR, not just 5G smartphone modem development. So, probably one the reason that Apple is taking over the Intel’s smartphone modem business not only to develop innovative hardware but also to ramp up the production.