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Apple confirms deal to buy Intel modem business

Apple has acquired Intel’s mobile modem business, thus dropping a major hint at offering 5G connectivity in its future devices.

As per a media release that appears on Apple’s website, the tech giant said that it will be paying the sum of $1bn in order to close this deal with Intel at some point during 2019’s fourth quarter. And this offers a hint in what the future may look like: 5G Apple iPhones which use the iPhone manufacturer’s own chips.

Going by the deal, Apple will not just get around 2200 Intel employees, but its equipment, leases and intellectual property as well.

According to Apple, Intel will continue developing modems for IoT devices, PCs as well as autonomous cars.

Notably, Qualcomm supplied such kinds of devices previously to Apple, however; their relationship tarnished over the past few years. It is because of this that Apple inclined towards Intel for connectivity and modems hardware. But allegedly, Intel could not offer devices according to required quality as well as within deadline which therefore pressed Apple to peace out with Qualcomm.

Once all of this was done, Intel made an announcement that it would withdraw from the connectivity business saying that it does not see any way forward without Apple being a client. It was then that Apple believed this to be a great opportunity and offered Intel the deal. Well, we will have to wait and see what would happen next with Qualcomm.

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