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Apple plans to buy Intel's smart phone modems sector for $ 1 billion. The Wall Street Journal has announced that the deal could be announced early next week.
According to the report, the two companies are in advanced talks to convince the iPhone phone maker to become familiar with Intel's intelligent modem work.
The information indicated the potential interest of Apple for the agreement immediately after the withdrawal of Intel's development of fifth generation modems (5G).
This was confirmed when Intel suspended the modems auction to enter into an exclusive agreement with an unnamed bidder.
The acquisition gives Apple access to all of Intel's talent, which has been working on modem chips for years.
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The agreement also allows access to all Intel patents, which can be crucial for the iPhone maker to create modem devices for his smartphone.
Earlier this year, Intel announced the suspension of the development of fifth-generation modem chips after Apple reached a surprise deal with Qualcomm, which means Apple's return to Qualcomm modems on its phones.
Bob Swan, CEO of Intel, said the chip maker had abandoned the modem because of the compromise because he saw no incentive to continue without his single client.
According to a Bloomberg report at the time, Apple had concluded that Intel would not be able to provide an iPhone 5G modem in the required timeframe, which would require it to reconcile with Qualcomm after years of controversial litigation.
The deal makes a lot of sense for Apple after its problems with Qualcomm and Intel has slowed Apple's plans to insert a 5G modem chip into an iPhone phone.
As major Android phone manufacturers, such as Samsung, have already started selling 5G phones, the iPhone maker must be in a hurry to provide a 5G modem on its phone.
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