Apple to Purchase 5G Modem Business from Intel for $1 Billion | iPhone 5G Coming!

Technology

According to expectations the deal between Apple and Intel will be announced within next week. It was assumed that Apple and Intel, the world’s two dominant tech giants would have just go separate ways regarding the 5G business, whilst things will ultimately settle down.

However, this is not what happened, as per The Wall Street Journal’s new report. According to the WSJ, Apple will maybe seal a deal with Intel to purchase its 5G modem business for smartphones, for an amount of $1 billion.

Intel, America’s top chipmaker, was an appalling supplier for Apple, America’s dominant smartphone dealer. Since the time Intel failed to supply Apple with a 5G-modem for its iPhone, within a timeframe which coincides with Apple’s intention to release 5G equipped smartphones.

Due to Intel’s malpractices, Apple had to reach an agreement with Qualcomm to use its modems in the Apple iPhones once again.

According to the report of WSJ, 5G is a crucial technology for Apple, which could assist in a major increase regarding upgrades when this tech is incorporated into iPhones during 2020.

The 5G iPhone’s affordability may also generate more revenue for the company as Apple signifies perfection in all departments.

The report has confirmed that Apple was sick and tired of Intel’s modem struggles, which gave the company no choice to get rid of its problems by making an arrangement with Qualcomm.  

5G iPhones Will Be Available in September 2020:

Now Apple is looking ahead to purchase the remnants of the 5G modem business from Intel. The expectation is that the 5G equipped iPhones will be available during September 2020. The time when another mobile company, powered by Android, had achieved this milestone already.

However, it should be pointed out that Apple’s frustrations concerning Intel’s modem efforts, started quite earlier than stated in certain previous reports.

5G Smartphone Modem:

The production struggles were not only applicable to the 5G smartphone modem, but also involved the modem development for the following iPhone models: iPhone Xs; iPhone XS Max as well as the iPhone XR.

Possibly one of the reasons why Apple is acquiring the smartphone modem business from Intel, is not just restricted to developing innovative hardware, but to increase the production.

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