Mobile & Wearable

Apple could buy part of Intel’s smartphone modem business

Rumors suggest a takeover could come soon

Apple is in talks to purchase part of Intel’s smartphone modem business, according to reports.

This is not the first time Apple has been rumored to take over at least a section of Intel’s modem operation, but the latest report from The Information suggests the company is still considering the possibility of a takeover bid.

Intel is reported to be looking to sell its smartphone modem business, but spin it off into several different acquisitions to maximize profitability and returns on investment.

Apple is reportedly considering the possibility of purchasing its German arm, which is one of the ‘strongest pieces’ in Intel’s arsenal.

Back in 2011, Intel took over Infineon for $1.4 billion – a chip maker that served as a base for its modem team. All of that company’s operations are managed from Germany.

Of course, nothing can be confirmed when it comes to Apple and acquisitions, although it’s thought that the company is in deep talks with Intel over a takeover.

According to The Information, a bid could see “hundreds of modem engineers to Apple,” offering the company a significant boost. Remember that Apple is currently working on its own modem project, with plans to ditch third-party suppliers from 2022.

Back in April, the Wall Street Journal said that Apple was considering buying Intel’s modem business, but nothing came of those talks and Apple signed a new deal with Qualcomm, following legal action between the two companies.

However, the latest report is the first time the German arm of the business has been referenced, suggesting that Apple is in negotiations with the company and is ironing out the final points.

Speaking in a statement, Intel said: “We have hired outside advisers to help us assess strategic options for our wireless 5G phone business. We have created value both in our portfolio of wireless modem products and in our intellectual property. We have received significant interest in the business but have nothing more to say at this time.”

Over the past year, Apple has hired a number of key Intel executives as it looks to build its own modem team in-house. Back in February, for example, Apple hired Umashankar Thyagarajan, Intel’s lead 5G engineer, to assist with its own 5G technology for iPhones.

Does an Intel takeover make sense in your mind? Sound off on Twitter and include our handle @AppleMagazine, and check back for more on Apple and Intel as soon as we get it.

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