Apple wants to buy part of Intel’s business

Apple wants to buy Intel: After years of disputes in court, Qualcomm and Apple announced a truce and signing an agreement for the supply of chips and components for the iPhone.

On the same day, Intel announced that it was ceasing attempts to release a 5G modem. As it turned out, this decision is final – the company plans to sell all its developments related to 5G.

What happened?

Commenting on the decision to refuse the release of modems, Intel CEO Robert Swan said: “In light of the Apple announcement and Qualcomm, we assessed the prospects for us to earn money by supplying the technology for smartphones, and came to the conclusion that we do not have such a possibility. We are very pleased with the capabilities of 5G and the transition of networks to the clouds, but in the modem manufacturing sector for smartphones, there is no clear vision of the path to profitability and positive results. 5G continues to be a strategic priority for Intel, and our team has developed a sufficient number of wireless solutions and intellectual rights.”.

In addition, the modem business annually causes about $ 1 billion in losses. After all, Intel is far from the most advanced solutions, and in time it is clearly losing to competitors. For example, if Qualcomm has already prepared a 5G modem for a long time, then Intel was only going to release it in a year or two.

Who buys?

As it turned out, Apple and Intel have been negotiating the purchase of 5G business since last year. It seems that even despite the agreement with Qualcomm, the “Apple” company is trying to become independent in this matter and to produce modems for smartphones with support for fifth-generation networks.

In addition to Apple, several other companies are interested in buying. According to rumors, Intel wants to sell all the development and patents, but how much it will cost and whether the transaction will take place at all is not yet known.

Source: The Wall Street Journal

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