Apple In Advanced Talks To Buy Intel's Smartphone-Modem Chip Business
A deal, covering a portfolio of patents and staff valued at $1 billion or more, could be reached in the next week, the people said -- assuming the talks don't fall apart. Though the purchase price is a rounding error for companies valued in the hundreds of billions of dollars, the transaction would be important strategically and financially. It would give Apple access to engineering work and talent behind Intel's yearslong push to develop modem chips for the crucial next generation of wireless technology known as 5G, potentially saving years of development work.
For Intel's part, a deal would allow the company to shed a business that had been weighing on its bottom line: The smartphone operation had been losing about $1 billion annually, a person familiar with its performance has said, and has generally failed to live up to expectations. Though it would exit the smartphone business, Intel plans to continue to work on 5G technology for other connected devices.
A deal, covering a portfolio of patents and staff valued at $1 billion or more, could be reached in the next week, the people said -- assuming the talks don't fall apart. Though the purchase price is a rounding error for companies valued in the hundreds of billions of dollars, the transaction would be important strategically and financially. It would give Apple access to engineering work and talent behind Intel's yearslong push to develop modem chips for the crucial next generation of wireless technology known as 5G, potentially saving years of development work.
For Intel's part, a deal would allow the company to shed a business that had been weighing on its bottom line: The smartphone operation had been losing about $1 billion annually, a person familiar with its performance has said, and has generally failed to live up to expectations. Though it would exit the smartphone business, Intel plans to continue to work on 5G technology for other connected devices.