Intel in April stunned the tech community when it announced it's making an exit in the smartphone modem business. But somebody is ready to take over, and not surprisingly, it's the Cupertino tech giant, Apple. This could mean some serious changes for iPhones in the future.
A report from The Wall Street Journal Monday claims that Apple is in advanced talks to buying Intel's smartphone modem business. This $1 billion deal would give Apple access to Intel's work on 5G technology, including patents and potentially its employees. Older iPhones use Qualcomm's 4G chips, while the newer ones, including the iPhone XS, XS Max, and XR run on Intel modems.
Apple has been busy expanding in the components market and plans to own everything that makes up its devices, both hardware, and software. If Apple is capable of producing its own chips, it will have better control over the features that come with its machines. Also, the company will be able to manage the timeline when it comes to launching new products. By purchasing the technology that Intel utilizes, Microsoft will finally gain control over something that was previously left to the capable hands of another company - the modem used in smartphones.
It's a smart move for Apple, considering it will obtain important patents that it can use for legal issues in the future, like what Huawei had to go through - suing rivals for infringement of patents. Moreover, Apple could start making chips that connect its devices to ultra-fast 5G wireless networks.
As of writing, neither Apple nor Intel has given official statements.
We've seen Apple increase its focus on the parts and components that make its machines work over the past decade. The company owns the security chips it uses to protect personal data; designs its Bluetooth chips that make linking AirPods to iPhones possible, and come up with designs for its own application processors, which are responsible for how mobile devices "think."
In 2018, Apple shelled out $600 million to buy part of Dialog Semiconductor, allowing the company to have full control of power management chips essential for ensuring that iPhones are charged correctly and will not consume excessive energy.
Currently, Apple is working on chips that will replace Intel's processors in Mac computers, which should be completed by 2020. In time, all Macs will have the processor strategy used in iPhones and iPads, all of which are produced by Apple.
