Apple said to be near $1 billion Intel deal
Acquisition could affect iPhone designs, be second-largest in the firm’s history
Apple, in an effort to have more command over the components that power the iPhone, is reportedly close to finalizing a deal to acquire Intel’s smartphone-modem chip business for at least $1 billion.
The deal between the two Silicon Valley titans would involve Apple acquiring Intel staff, technology and patents related to the development of smartphone-modem chips. The Wall Street Journal reported that talks between the companies were ongoing, and could be finalized by the end of this week.
If completed, the deal would give Apple a needed step toward developing chips for use with the next generation of mobile-phone technology, called 5G.
As iPhone sales have recently weakened, Apple has been looking at developing new mobile chips itself as a way to improve the capabilities of its phones, support mobile-phone services, and build up it growing services busi
ness.
The deal would also benefit Intel. The semiconductor giant has been seeking to get out of the smartphone-modem business, which has proven to be a money loser at a time the company has put more focus on growth areas such as the automotive industry, graphics chips and its traditional personal-computer business.
For Apple, the acquisition could end up being the second-largest in its history, trailing only the $3 billion it spent to buy Beats Electronics in 2014. The timing of the acquisition could also end up coinciding with the companies’ upcoming quarterly earnings results. Intel is scheduled to give its fiscal second-quarter report after stock markets close on Thursday, while Apple reports its third-quarter results after the close of trading on Tuesday, July 30.