Apple Considered Purchasing Intel's Smartphone Modem Chip Business

Apple had discussions with Intel about potentially acquiring parts of Intel's smartphone modem chip business, reports The Wall Street Journal. Apple was interested in Intel's technology to speed up its own efforts to build modem chips for smartphones.

Intel and Apple entered into discussions last summer and the talks continued for months, but ended right around the time Apple settled its legal dispute and reached a supply agreement with Qualcomm.

Intel 5G Modem
Sources at Intel that spoke to The Wall Street Journal said that Intel is exploring "strategic alternatives" for its smartphone modem chip business, and is still interested in a sale to Apple or another company.

In an interview yesterday, Intel CEO Bob Swan confirmed that Intel is considering alternatives "based on what's best" for Intel's IP and employees.

Selling the modem business would allow Intel to unload a costly operation that was losing about $1 billion annually, according to another person familiar with its performance. Any sale would likely include staff, a portfolio of patents and modem designs related to multiple generations of wireless technology, said Patrick Moorhead, principal at Moor Insights & Strategy, a technology firm.

Intel announced earlier this month that it was exiting the 5G smartphone business, just hours after Apple and Qualcomm announced a resolution to their legal troubles and a new supply deal.

Apple had been planning to use Intel's 5G chips in its 2020 iPhones, but rumors suggested Intel was having trouble meeting design deadlines and that the relationship between Apple and Intel was souring. Just yesterday, Swan also confirmed that Apple's deal with Qualcomm was the reason why Intel decided to stop making 5G chips.

Apple is now planning to use Qualcomm's 5G modem chips in its 2020 5G iPhones. Intel has said that it is going to continue to supply 4G LTE chips to meet already established orders, which means that Apple's 2019 iPhone lineup will likely continue to use Intel chips rather than Qualcomm chips. It is too late in the design cycle for Apple to swap chips for this year's upcoming devices.

Top Rated Comments

AngerDanger Avatar
27 months ago
Selling the modem business would allow Intel to unload a costly operation that was losing about $1 billion annually, according to another person familiar with its performance. Any sale would likely include staff, a portfolio of patents and modem designs related to multiple generations of wireless technology, said Patrick Moorhead, principal at Moor Insights & Strategy, a technology firm.
Selling the modem business would also prevent one other thing from ever happening:

Score: 20 Votes (Like | Disagree)
Freida Avatar
27 months ago
What is so special about 5G? Sure its faster but LTE is already fast so why is everyone obsessed about 5G? Also, it will take years before the coverage is present so surely there is no rush :)
Score: 18 Votes (Like | Disagree)
realtuner Avatar
27 months ago
I’m seeing a 26ms ping on my LTE on my 2017 iPhone X. I just ran Speedtest from inside the office building I work in.

Seems fine, pretty darn low latency really.
Just tested my XS Max (inside our large steel framed warehouse) and got 22ms ping, 45Mbps download and 26 Mbps upload.

I also looked at my history over the years (nice that the Speedtest App keeps a record of all your tests).

On 3G iPhones I had results from 1.5-4.5Mbps.
On 4G iPhones I had results from 5-20Mbps for my earlier devices (5S and 6).
On my XS Max I get between 40-80Mbps consistently.

The difference from 3G to 4G was significant. The difference from 4G to 5G might look good on paper, but will have practically no impact whatsoever on people using their devices. Getting over 40Mbps is plenty fast for any tasks I could reasonably do on a mobile device. It's also plenty fast enough to use as a mobile hotspot for my MBP - I never see slow downs or delays while browsing the Internet or editing documents stored online. It's not like I'll ever need to download multi-GB files when I'm mobile.

5G is just a check mark on a feature list that companies will try to make seem far more important than it really is so they have an excuse to sell people shiny new devices.
Score: 15 Votes (Like | Disagree)
name99 Avatar
27 months ago
What is so special about 5G? Sure its faster but LTE is already fast so why is everyone obsessed about 5G? Also, it will take years before the coverage is present so surely there is no rush :)
What answer do you want? QC's answer is that it is the second coming of christ, the greatest tech advance in human history --- and it can all be yours right now as long as you give them lots of your money.

How about more rational analysis?
- for "normal" phone usage, 5G gives more AGGREGATE bandwidth/tower. This is not important insofar as your indivdiual phone goes faster. What it means is that even as your phone uses more data year after year, and more phones join the system year after year, things don't get slower. No-one (with a brain, so, yes, this excluded 90% of the internet) cares that a SINGLE phone can run at a kabillion bits/sec; what matters is that the cell tower can put a kabillion bits/sec to service all those phones simultaneously connected to it.

- for IoT usage, 5G introduces a new set of much more efficient protocols that allow all sorts of things (security equipment, metering equipment, weather equipment, health equipment, ...) to communicate with the cellular network more efficiently. This is important, useful, and will be of widespread general benefit. But it's also only relevant to the IoT makers and the telcos, it doesn't affect your phone.

- for dense populations (like stadia, conventions, airports, ...) 5GNR (aka mmWave) allows for much higher bandwidth in these localized areas. This is useful if you've ever been upset at how slow your phone is in such environments.
Note, however, that WiFi has its own plan to achieve the same sort of performance boosts in these environments...
So, yes, we understand why QC and VZW want you to believe that 5GNR is ESSENTIAL to your connected future, but it's far from clear that this is actually true; it's possible that WiFi's stake in this area (called WiGig/802.11ad) will get there first and provide a better solution to this particular problem; I've not seen a good analysis either way.
Score: 12 Votes (Like | Disagree)
jimbobb24 Avatar
27 months ago
It’s bad for the industry if there is only one supplier.
Score: 8 Votes (Like | Disagree)
jacks64 Avatar
27 months ago
What is so special about 5G? Sure its faster but LTE is already fast so why is everyone obsessed about 5G? Also, it will take years before the coverage is present so surely there is no rush :)
Exactly! Don’t know about you,but i am sick of all the tech sites keep banging on about it.
Score: 7 Votes (Like | Disagree)

Top Stories

General Music and AirPod 3 Feature

Rumor: Apple to Announce Third-Generation AirPods and HiFi Apple Music Tier on May 18

Thursday May 13, 2021 10:32 pm PDT by
A new rumor suggests that Apple will announce the third-generation AirPods and the recently rumored HiFi, or high-fidelity Apple Music tier, on Tuesday, May 18, via a press release on its website. The new rumor comes from Apple YouTuber Luke Miani who shared the alleged exclusive news with the AppleTrack website. According to the YouTuber, Apple plans to release the next-generation AirPods...
apple park drone june 2018 2

Apple Fires Newly Hired Ex-Facebook Product Manager Following Revelations of Past Misogynistic Comments

Thursday May 13, 2021 12:10 am PDT by
Apple has fired Antonio García Martínez, an ex-Facebook product manager and author of the controversial book "Chaos Monkeys," following public and internal calls for removal and investigation due to past misogynistic statements, The Verge reports. Apple hired Martínez earlier this week to join its ads team, however, comments that Martínez made in the past sparked condemnation from users...
imac m1 blue isolated 16x9 500k

M1 iMac is Up to 56% Faster Than Prior-Generation High-End 21.5-Inch iMac

Wednesday May 12, 2021 10:03 am PDT by
Apple's M1 iMacs are set to start delivering to customers next week, and ahead of the official launch day, benchmarks for the machines have been showing up on Geekbench, likely from reviewers who are testing them. It will come as no surprise that M1 iMac benchmarks are right on par with benchmarks for the M1 MacBook Pro, MacBook Air, and Mac mini, coming in with an average single-core score...
2021 mbp hdmi slot 3d

2021 MacBook Pro Leaks Confirm Returning MagSafe and Ports

Friday May 14, 2021 3:06 am PDT by
Apple's upcoming MacBook Pro models are expected to feature a number of major changes such as larger display options and powerful new Apple silicon chips. Among the more surprising updates to this year's MacBook Pro models is the return of three ports that have been missing from the machines for over five years. Expected to come in 14- and 16-inch sizes, the 2021 MacBook Pro models are...
fortnite apple logo 2

Judge in Epic vs. Apple Case Floats Potential Compromise

Wednesday May 12, 2021 3:54 pm PDT by
In the ongoing legal battle between Apple and Epic Games, the two companies are this week calling up their expert witnesses to argue their points before Judge Yvonne Gonzalez Rogers, who will make a decision in the case after a three week trial. Expert testimony is not as exciting as some of the leaked App Store documents that were highlighted last week, especially as much of what's being...
google photos

PSA: Google Photos Unlimited Storage Ends Next Month, Here's How to Export Your Pictures to iCloud

Thursday May 13, 2021 5:26 am PDT by
For as long as it's existed, Google Photos has offered free unlimited storage for uploading images at a reduced yet good enough quality for most users. From June 1, 2021, however, all photos and videos uploaded to Google accounts will count against users' cloud storage. If you've been relying on Google to back up your media library, it may be time to move that content elsewhere. This article...
AirTag in Envelope Feature 2

AirTag Used to Successfully Track a Mailed Package Across the UK

Wednesday May 12, 2021 8:44 am PDT by
An Apple customer in the United Kingdom has successfully used Apple's Find My network to track an AirTag as it was being sent by mail to a friend in a completely different city. Outlined in a blog post at Intego, Kirk McElhearn said he taped an AirTag to a piece of card, wrapped it inside a small bubble envelope, and then sent it on its way. Kirk lives in the small town of...
m1 ipad pro chip

M1 iPad Pro Over 50% Faster Than Previous Generation in Early Benchmarks

Tuesday May 11, 2021 11:56 am PDT by
Last month, Apple introduced a new iPad Pro with the same M1 chip found in the latest Macs, and early benchmark results indicate that the M1 iPad Pro is over 50% faster than the previous-generation iPad Pro. Based on five legitimate Geekbench 5 results (here's the fifth) for the fifth-generation 12.9-inch iPad Pro with the M1 chip, the device has average single-core and multi-core scores of...
prosser macbook air colors stacked

Images Reveal Colorful New MacBook Air Design

Tuesday May 11, 2021 5:06 am PDT by
Apple's next MacBook Air will feature a completely new design and come in a range of colors like the 24-inch iMac, according to leaker Jon Prosser, who has now released supposedly accurate renders of the new machines based on leaked images. In a new video uploaded to YouTube channel Front Page Tech, Prosser elaborated on his previous prediction that Apple's next-generation MacBook Air models ...
iPhone 13 Camera Backs

iPhone 13 Models Will Be Slightly Thicker and Will Have Larger Camera Bumps

Monday May 10, 2021 10:41 am PDT by
Apple's upcoming iPhone 13 models will be slightly thicker than the iPhone 12 models and will also feature larger, thicker camera bumps with lenses that protrude less, according to iPhone 13 schematics seen by MacRumors. The new iPhone 13 and 13 Pro models are expected to feature a thickness of 7.57mm, up from 7.4mm in the iPhone 12 models. That's an increase of 0.17mm, which won't be hugely ...