Apple Shares Publicly That It Is In Trade Talks With Intel Over Its Modem Business

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Although Apple is best known for its iPhone, iMac, MacBook, iPad, and other proprietary devices that the tech giant developed on its own, part of the company’s business model is to purchase existing technologies and brands that would ultimately bolster its existing products or pair well with others.

Since Apple’s first acquisition back in 1988, nearly 12 years after the company was founded by Ronald Wayne, Steve Wozniak, and Steve Jobs, the company has acquired the full rights to 108 other technologies or assets, adding up to a total of 109 acquisitions.

Earlier today, on Tuesday, June 11, 2019, according to The Information, Apple shared that it is currently in the middle of negotiations to purchase part of fellow tech company Intel’s operations, specifically those associated with the research and development of modems.

Intel originally purchased the modem-related line of business from Infineon back in 2011 for a whopping $1.4 billion. The business unit has a long, successful history of working with Apple, as it supplied Apple with baseband chips for iPhones manufactured from 2007 to 2010.

Although the Silicon Valley tech giant just now came forward and shared with the world that it has been in negotiations to purchase the modem-related area of business, the company further indicated that the two have been in close discussions for Apple to acquire the business functions since last year.

If Apple ultimately receives the green light from Intel, Apple will most likely acquire the employment contracts for hundreds of some of the industry’s brightest engineering minds. It isn’t clear how much Apple has offered to purchase the business’ modem functions for, however.

One of the primary drivers behind why Apple is looking to purchase the modem business functions and operations from Intel is because of a harsh lawsuit the tech giant had with Qualcomm. Qualcomm, the largest manufacturer of many of the chips that Apple uses in its products, charged quite a bit for companies like Apple to license its chips for their own use. Apple had paid Qualcomm about $4.5 billion to license its chips for six years, as well as a supply of chips that would last at least two years.

It’s worth noting that Apple has picked up several employees who used to be executives of Intel. Further, Intel hired those employees as part of its acquisition of Infineon’s operations. As such, Apple already has a level of familiarity with Intel’s modem operations.

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