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Apple might buy Intel’s mobile chip business | TECH(feed)

Computerworld | Jul 25, 2019

Apple is reportedly in talks to purchase Intel’s smartphone modem business -- and therefore all the intellectual property that comes with it. This move suggests Apple may eventually make its own 5G chips, but we’re likely still years away from that happening. In this episode of TECH(feed), Juliet breaks down the consequences of this potential purchase and how it could make Apple an even bigger power in tech.

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Hey everyone welcome back to tech feed i’m juliet beauchamp. We already knew the race to 5-g was going on, but it’s about to get even more intense. Stick around.

The wall street journal reported apple is in talks to buy intel’s smartphone modem business--that could be a step towards apple eventually developing its own 5-g chip. But a 5-g chip from apple won’t happen overnight--or, frankly, any time in the next few years. Here’s why.

Just a few months ago, intel and apple were in talks to develop a 5-g chip for a future 5-g iphone together. But then apple settled a lawsuit with qualcomm. And part of that settlement calls for a six-year licensing agreement in which apple will use qualcomm’s smartphone chips. So the first 5-g iphone will very likely be powered by a qualcomm modem. But after those six years, apple would probably need to negotiate a new deal with a chip maker or make its own. And this is where intel comes in.

Shortly after the qualcomm and apple settlement, intel announced it would not enter the 5-g business. But apple potentially buying intel’s wireless modem business still makes a ton of sense. The most important thing apple could gain from this purchase are intel’s patents and plans for 5-g chips. Owning that intellectual property is valuable since apple can use it as a starting point for its own potential 5-g chip plans.

I’ve said it before and i’ll say it again: just because 5-g is a hot topic right now doesn’t mean we’ll all have 5-g devices within the next year. We still need the network infrastructure for widespread 5-g to become a reality. But once that happens, this deal will give apple the power to be a force in 5-g devices. That includes iphones, but who knows what else apple will choose to power with 5-g. Most of all though, this move gives apple a lot of autonomy. When 5-g is an eventual, widespread reality, apple won’t have to rely on chip makers and licensing deals to make 5-g devices. Good news if you want more on this deal and apple speculation in general--you can check out our tech talk with macworld’s mike simon. We’ll link it below.

Thanks for watching this episode of tech feed. If you liked this video be sure to give it a thumbs up and subscribe to our channel. Check out links below for more on this story, and we’ll see you next time.
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