Apple is in the middle of negotiations with Intel according to a report by Bloomberg’s Liana Baker, Mark Gurman, and Ian King. The report suggests that Intel’s cellular modem unit is struggling hence Apple’s interest in the division.
A person close to the matter, who asked to remain anonymous, says “a deal would give Apple key engineering talent and patents that would help it develop new devices to connect to the mobile internet. The Intel assets could be valued at about $1 billion. An agreement could be reached as soon as this week, though it’s possible talks could break down without a deal”.
There has been no official word from either Apple or Intel on the matter at this time, although, a deal between the two companies makes sense when considering Apple’s plans to build in-house components.
At the moment, Apple products like the iPhone, iPad and Apple watches use Intel modems. These components allow devices to function effectively over a 4G LTE network. Apple, however, is said to be looking at introducing 5G devices by 2020. In order to make that happen, the company needed to first settle its long-standing royalties lawsuit with Qualcomm.
In the Bloomberg report, the authors say, “Qualcomm’s 5G modems are widely regarded to be superior to those from Intel. However, Apple’s licensing and royalties agreement with Qualcomm ends in six years and Apple appears intent on eventually replacing the Qualcomm parts with modems developed internally”.
If the negotiations with Intel prove successful, Apple should soon begin working on building their own cellular modems.
By Jenna Cook
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