Apple is in "advanced talks" to buy the Intel smartphone modem business, the Wall Street Journal reports, allowing the iPhone maker to bring efforts to develop the critical components making a smartphone in-house.
The news is technically not, well, news-- The Information had a similar story little more than a month ago-- but the WSJ's unnamed sources add a deal covering a portfolio of patents and staff worth around $1 billion could be reached as early as next week. Furthermore, Apple has reportedly already been working with the team on a first Chipzilla 5G mobile modem, but failed to create such a component in time.
Such a deal represents a potential win-win for both Apple and Intel. On one hand, Apple acquires experienced staff and a bevy of patents, bringing about an in-house 5G modem development team. On the other, Intel offloads a business whose losses clock at around $1bn annually, at least according to the WSJ.
The WSJ story comes months after Apple reached a settlement with Qualcomm for the supply of 5G modem, bringing to a close years of ugly court litigation. If one is curious as to how much the settlement cost Apple, the Qualcomm Q2 2019 fiscal report has the answer-- a cool $4.5 billion. Such a sum might sound massive, but considering the Apple warchest reportedly contains $225.4 billon in cash on hand alone, in iPhone maker terms it's little more than small potatoes
