'

Apple's reportedly trying to buy Intel's modem unit - Here's Why

Would Intel be foolish to let 5G go?

Apple's reportedly trying to buy Intel's modem unit - Here's Why

Apple's reportedly trying to buy Intel's modem unit - Here's Why

Apple needs access to 5G technology, and right now, Apple doesn't want to pay the high royalty fees that come with using Qualcomm's technology. Qualcomm knows how valuable 5G is within the mobile computing market; and with this in mind, they are willing to let Apple and other company's pay through the nose for early access. 

According to the Wall Street Journal, Apple is in talks with Intel to acquire its modem unit, alongside the IP and staff to make the unit function. Apple is reportedly prepared to pay $1 billion for the group, seeing 5G as an essential strategic technology for the company's future mobile devices. 

Within Intel, the company's modem group can be considered a failure. Right now, the group is losing the company money each quarter while failing to achieve high sales of its chips with major mobile phone makers. Intel hoped to sell its new 5G chips to Apple, but sadly the company could not provide them with the technology in time, forcing Apple to move back to Qualcomm. 

Apple wants to own all the essential technologies that the company requires to operate. This self-sufficiency prevents them from paying accessive royalties to 3rd parties while enabling them to focus the development of their technology on areas which they deem as critical. A recent example of this is Apple's move to design its own GPUs with recent iPhone SoCs, moving away from Imagination Technologies to become more self-sufficient. 

5G tech will enable Apple to offer a compelling upgrade over its previous generation products, with the speed and bandwidth provided by 5G enabling faster internet connectivity and greater access to cloud services on the go. Today, Apple's iPhone sales are comprised of a larger number of "legacy" devices than in prior years. Fewer people are buying Apple's latest iPhones, showcasing the company's need for the company to deliver a compelling upgrade option to consumers. 

Apple's reportedly trying to buy Intel's modem unit - Here's Why  

There is no question about it, Apple should buy Intel's modem business, but the question today is whether or not Intel should sell its 5G technology. 5G remains an important strategic technology, especially within the mobile market. 5G will become an important factor for some sections of the notebook market, granting Intel and advantage over its rivals. With Qualcomm hoping to gain access to the laptop market, Intel's utilisation of 5G could prove to be a critical factor.  

You can join the discussion on Apple's plans to buy Intel's modem business on the OC3D Forums

«Prev 1 Next»

Most Recent Comments

24-07-2019, 07:57:08

demonking
what a decision to make!
Sell our losses to another company and they turn it profitable or Don't sell and risk never making anything on it. Catch 22.
Apple are wise to do this, whether Intel should give up or not is another question, Chances of Intel breaking into this sector in a big way are not the best, though chances of them doing it without the 5g IP behind them make it even slimmer.
I'd sell it personally, I can't see intel making a massive margins behind this and the odds of licencing it even smaller. Does anyone see 5g as a big thing in notebooks? It would be the only reason id say for intel to hold off.Quote

24-07-2019, 08:18:08

tgrech
Yeah Intel essentially shut down the division after Apple indicated they would probably no longer be a customer, it's been on hiatus, and they still seemed to have problems left to solve. The division was almost entirely reliant on Apple, so if Apple aren't going to buy the products from them, this is the 2nd best thing.Quote

24-07-2019, 08:43:10

WYP
Quote:
Originally Posted by demonking View Post
what a decision to make!
Sell our losses to another company and they turn it profitable or Don't sell and risk never making anything on it. Catch 22.
Apple are wise to do this, whether Intel should give up or not is another question, Chances of Intel breaking into this sector in a big way are not the best, though chances of them doing it without the 5g IP behind them make it even slimmer.
I'd sell it personally, I can't see intel making a massive margins behind this and the odds of licencing it even smaller. Does anyone see 5g as a big thing in notebooks? It would be the only reason id say for intel to hold off.
Quote:
Originally Posted by tgrech View Post
Yeah Intel essentially shut down the division after Apple indicated they would probably no longer be a customer, it's been on hiatus, and they still seemed to have problems left to solve. The division was almost entirely reliant on Apple, so if Apple aren't going to buy the products from them, this is the 2nd best thing.
Intel can't make the business profitable without customers, and they don't have customers because they are behind Qualcomm. If they were even or close enough they wouldn't have trouble getting customers.

5G makes sense for notebooks, especially for ultrabooks and other lightweight designs. Intel also has their plans to supply hardware for 5G infrastructure.

Ultimately everything depends on if Intel wants to push 5G for notebooks and what deal they can make with Apple which will allow that to happen. Intel partners have already shown 5G compliant M.2 cards. Smartphone-wise, they might as well sell, but it's other market segments that Intel could still find 5G IP useful for.

ARM wants to create more powerful devices and Qualcomm wants to get into laptops. Delivering 5G alongside more powerful ARM cores could start to build momentum for Microsoft's new Windows on ARM stuff, provided that Intel doesn't have a response.

5G is gonna be a big deal for mobile computing, as it can offer a latency decrease as well as 1Gbps speeds (see link below for EE's thoughts on 5G).

https://shop.ee.co.uk/features-and-a...erence_Q1_2019Quote

24-07-2019, 10:41:28

NeverBackDown
5G isn't really important though. Sure it's faster but who cares? So little supports it it's basically going to be equal to RTX right now and will stay that way for a long time. We can already get 4G out of notebooks I'm not sure why faster speeds are so important.Quote

24-07-2019, 10:48:06

tgrech
5G will bring faster than copper broadband to much of the world where fibre-to-the-home isn't available. It's not just a step forward for wireless networking, it's a step forward for all networking. The 1ms target latency of 5G networks are unparalleled for every form of internet connection except fibre to the home, which brings the possible use cases for internet connections to a whole new world of devices, including real time robotics, monitoring and IoT with a far greater distribution, while significantly reducing the costs of new infrastructure in cities and for companies. The roll out for many countries is already faster and wider than any previous wireless technology due to the significant cost savings and economic benefits it will bring. The biggest boons for 5G are definitely for industry rather than consumers(Unless you're a gamer or something where that ultra low latency becomes valuable), but even then the much greater capacity will also help free up and speed up existing 4G and 3G networks for more traditional use cases or rural coverage.Quote
Reply
x

Register for the OC3D Newsletter

Subscribing to the OC3D newsletter will keep you up-to-date on the latest technology reviews, competitions and goings-on at Overclock3D. We won't share your email address with ANYONE, and we will only email you with updates on site news, reviews, and competitions and you can unsubscribe easily at any time.

Simply enter your name and email address into the box below and be sure to click on the links in the confirmation emails that will arrive in your e-mail shortly after to complete the registration.

If you run into any problems, just drop us a message on the forums.