Apple in negotiations with Intel
A report revealed that Apple has approached Intel to buy their modem division, a deal that could reach up to $1 billion.
According to the Wall Street Journal, citing sources ‘with knowledge of the matter’, Apple would gain a large degree of control over devices such as its own iPhones and iPads. With this level of control (they) would also have influence over the development for competitors’ devices, particularly those made by its biggest rival: Samsung.
According to the US newspaper, Intel could finalize a cash-and-stock deal with Apple in the near future. This agreement would cover a full patent package, with the transfer of executives taking place as well. They also mention that there is a chance for this deal to still happen despite concerns about antitrust regulators and other countries.
Here is a history lesson: Apple and Qualcomm had a big dispute years ago. That’s right, Intel was the supplier at that time. As soon as they had resolved their differences, with Apple in negotiations with Intel, the tech giant managed to gain partnership.
Apple developing 5G modems
After Apple announced the revalidation of the deal with Qualcomm, Intel made a decision to pull out of developing 5G modems. Analysts believe they likely took a decade to develop and cost several billion dollars. Intel’s acquisition of the segment related to Infineon Technologies for $1.4 billion made it an even bigger player in the semiconductor market.
Apple and Intel started to talk about their partnership as early as summer 2018. This was around the time that former Intel CEO Brian Krzanich left his job. Krzanich was a proponent of developing a modem chip division and believed that the 5G technology would be a path to significant increase in profits. Bob Swan became CEO of Intel last year, and discussions between him and Apple also rekindled around this time. Intel’s growth came to a standstill due to the losses in its mobile modem division, and Apple would often find themselves with a chip they couldn’t use because they couldn’t get their modem manufactured.
Apple acquired Dialog for a price of 600 million and 300 engineers. That’s precisely the sum agreed to pay last year when it acquired the facility and other team members from Dialog. The company usually acquires up to 15-20 small companies every year. It is also the company that acquired Beats Electronics for $3 billion in 2014, which was its largest acquisition to date.
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Author: PC-GR
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