Published 10:55 IST, July 26th 2019

All future iPhones could support 5G as Apple buying Intel's mobile modem division for $1 billion

Apple is set to acquire Intel's smartphone modem division in a deal valued at around $1 billion. The announcement has arrived three months after Apple put an end to a long-running dispute with chipmaker Qualcomm.

Reported by: Tech Desk
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Apple is set to acquire Intel's smartphone modem division in a deal valued at around $1 billion. anuncement has arrived three months after Apple put an end to a long-running dispute with chipmaker Qualcomm.

This is what it means for Apple

First things first, it means Apple w has everything it needs to adopt 5G techlogy for future iPhones. Secondly, settlement between Apple and Qualcomm prompted Intel to abandon its attempts to make chips for 5G modems, effectively putting that part of its business up for grabs.

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Once deal is completed later this year, Apple will be picking up about 2,200 Intel employees and 17,000 wireless techlogy patents. Barring any complications, deal is expected to close sometime between October and December.

“This agreement enables us to focus on developing techlogy for 5G network while retaining critical intellectual property and modem techlogy that our team has created,” said Intel CEO Bob Swan. "We’re looking forward to putting our full effort into 5G where it most closely aligns with needs of our global customer base, including network operators, telecommunications equipment manufacturers and cloud service providers.”

“We’ve worked with Intel for many years and kw this team shares Apple’s passion for designing techlogies that deliver world’s best experiences for our users,” said Johny Srouji, Apple’s senior vice president of Hardware Techlogies.

READ: 5G may be coming to iPhone in 2020 after all 

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Intel is likely to bolster Apple's attempt to build its line 5G chips and lessen its dependence on Qualcomm. Apple has hammered out a licensing agreement with Qualcomm that carries through April 2025, with an option to extend for an additional two years after that.

It could also spur speculation that Apple may be more open to making big acquisitions as it looks for new avenues for growth amid slowing demand for iPhone, its main moneymaker for past decade.

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Intel has already so much trying to make inroads in business of making chips for smartphone modems, with its big move coming in 2011 when it bought Infineon Techlogies’ smartphone modem division for $1.4 billion.

(With inputs from AP)

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10:55 IST, July 26th 2019