Apple has an interest in Intel’s 5G modem Chipset business. According to a report in the Wall Street Journal, Apple is now in advanced talks with Intel. There will a massive deal between these two tech giants. Previously, Intel hinted about exiting the 5g modem business. Apple showed interest and began the talks. The process of negotiation is over and the business price is evaluated at 1 billion dollars. The deal will be announced in the next week.
Apple is loaded with hefty cash and this report showed the interest of Apple for acquiring Intel 5g modem chipset is a huge business step.
After the report, the stock price of Apple raised 1% and Qualcomm’s stock price dropped 2%. Recently, Apple and Qualcomm have settled patent licencing practices. Due to this settlement, Intel announced that it will not produce more modem chips. Currently, Intel is providing processors to the latest generations of the iPhone.
Experts are considering this move as a critical move in the advancement of technology. Apple will develop the next generation of modem chip and upgrades will be ready sooner than the previous cycle.
Apple is buying Intel’s 5G Modem Business for $1 Billion
Qualcomm will also continue to build 5g modem, but Apple will have an edge. Analysts are saying positive things about the deal. After the announcement of the deal, Apple’s stock price will also rise.
Apple is practising aggressive strategies because it has 225 billion dollars in cash or marketable securities. In 2014, Apple acquired Beats Electronics and Beats Music for 2.6 billion dollars. During last year, Apple bought the staff and patents of British chip maker for 600 million dollars.
Large acquisitions are possible for Apple due to war chest cash available. Experts are pointing towards the conversion of Apple from a mobile corporation to a mega-giant.
5G technology is critical for future generations of devices. With the in-house production of modem chips, Apple will save plenty on the manufacturing. Furthermore, the production of Apple will become marginally smooth and streamline.
Apple and Intel refused to give a statement., but it is clear that Apple is going to dominate the market with this Deal.