Apple Reportedly In Talks To Buy Intel’s 5G Modem Business For $1 Billion

Bloomberg and other industry sources report that Apple (AAPL) is close to acquiring Intel's (INTC) 5G mobile modem business. For those of you who are not students of supply chain magic: if the deal closes, it will give Apple a portfolio of IP, a ton of expertise, speed to market, and -- drum roll -- independence from third-party 5G chipmakers. Win, win, win, win.

For extra credit, spend some time learning about how Apple controls the rest of its supply chain and how it became Grand Supply Chain Chess Master of the universe. It's a set of business lessons everyone can benefit from. As always, your thoughts and comments are both welcome and strongly encouraged.

Apple reportedly in talks to buy Intel’s 5G modem business for $1 billion
The Apple / Qualcomm fallout continues
By Chaim Gartenberg Jul 22, 2019, 5:54pm EDT

Apple may be closing in on a deal to buy up Intel’s abandoned smartphone modem business for $1 billion, with The Wall Street Journal reporting today that a deal could be announced as early as next week.

Intel announced back in April it was exiting the 5G mobile modem business earlier this year after Apple reached a surprise settlement with Qualcomm that would see Apple once again return to using Qualcomm’s modems in its phones. Intel CEO Bob Swan went on to clarify that Intel had abandoned the modem business directly because of the Apple settlement — without Apple as a customer, the company concluded that it “just didn’t see a path” forward.

The deal could go through as early as next week

According to a report from Bloomberg at the time, Apple reportedly decided Intel couldn’t provide a 5G modem the iPhone in a timeframe that worked with its plans to release 5G-ready smartphones, forcing Apple to reconcile with Qualcomm after years of contentious legal disputes. Now, a deal for Apple to acquire that portion of Intel’s business, covering a portfolio of patents and staff valued at $1 billion or more, could be reached in the next week, sources tell the WSJ.