The feud with Qualcomm made Apple think about purchasing Intel’s 5G smartphone modem manufacturing business. A report from the Wall Street Journal says that Apple was in talks with Intel about purchasing the modem manufacturing arm of the chipmaker’s business to end its 5G-related woes.
Talks between the iPhone maker company and Intel were halted because of the former’s settlement with Qualcomm recently. Intel manufactures modems are currently used in iPhones, but the company has said that its 5G modems won’t be available before 2021 which is a roadblock for Apple when it comes to bringing 5G to iPhones.
Qualcomm In, Intel Out
Intel gained its fair share of business from Apple by manufacturing iPhone modems in the aftermath of the ongoing tussle between Qualcomm and Apple.
Now that Apple and Qualcomm have settled their disputes and it has been decided that Qualcomm will manufacture modems of future iPhones, Intel is looking for a business entity to purchase its 5G modem manufacturing business.
Intel recently announced that it is discontinuing its chip manufacturing business after losing Apple as its client for the same.
WSJ’s report indicates that the Intel could sell its smartphone modem chip business to companies like Samsung, Broadcom or China-based Unisoc. It is also not determined whether Apple and Intel will open the talks again.
Could’ve Been A Win-Win For Intel
Had the talks resulted in Apple purchasing Intel’s modem manufacturing division, Intel would’ve benefited from it as it is losing around $1 billion annually from its now ended business division.
On the other hand, the decision would not have been preferable for Apple as it is clear that the company now wants to focus on subscription-based services after the slumping sales of iPhones.
Would you prefer Intel-made modems in iPhones over Qualcomm modems? Tell us your choice in the comments below.