Is Apple buying Intel's 5G business? A business move is on the horizon.
Apple has pushed Intel out of the market and is now said to want to buy the business it has ousted. A clever manoeuvre is emerging.
The Wall Street Journal reports that Apple is in "advanced talks" to buy Intel's 5G business. That's as firmly surprising as it is unsurprising. Because if it's true, it's a prime example of a rather cold but ingenious business move.
Because it was Apple that forced Intel to sell its modem chip business.
Apple cancels Intel's contract
Apple has not been on the best of terms with modem chip manufacturer Qualcomm for years. In fact, the two companies have been at such loggerheads that they have been litigating against each other in court for years. It is logical that Apple does not want to use Qualcomm chips in its iPhones. The Cupertino-based technology company even claims that Qualcomm has refused to sell chips to the giant. Apple and Qualcomm have been at loggerheads over patents.
The chip manufacturer Intel has benefited from this. Because someone had to produce chips for the iPhones. Problems first arose when it became apparent that Intel would not be able to meet the deadlines demanded by Apple with regard to 5G.
Then Intel was forced to take the lead.
Then the events came thick and fast.
Apple surprisingly comes to terms with Qualcomm, doing business with the company again. An unknown sum of money flows. A few hours later, Intel announces that it is exiting the 5G business. A few days later, Intel CEO Bob Swan tells the Wall Street Journal the following: "In light of the Apple/Qualcomm announcement, we looked at the profit opportunity we would have if we were supplying the technology for smartphones. We came to the conclusion that there was simply no way."
In short: Apple has pushed Intel out of the market with calculation.
Apple, the maverick
The fact that Apple likes to have absolute control over its own software and hardware is no longer a secret. The result is an ecosystem that works better and more closely together than the competition, reacts more quickly and receives upgrades across the board.
It is therefore not surprising that Apple also wants to bring the development of modem chips in-house, as the A-Bionic series of processors - currently in the A12 Bionic version - shows that Apple can get a lot out of technology.
According to the reports, the purchase price for Intel's 5G business is one billion US dollars.
Journalist. Author. Hacker. A storyteller searching for boundaries, secrets and taboos – putting the world to paper. Not because I can but because I can’t not.