A new report has surfaced online revealing some interesting news about Apple. It looks like Apple is in advanced talks with Intel to acquire its abandoned mobile model division. The information also revealed that Apple is willing to pay about $1 billion to acquire the modem business. If everything goes as planned, Apple and Intel may announce the deal “as early as next week”. This will ensure that Apple has both the technology, patents, staff, and infrastructure to make its 5G chips in Apple iPhone 2020 or even 2021. This deal will also give Apple tools to take on the likes of Qualcomm.

This WSJ report comes months after Intel revealed that it was exiting the 5G mobile modem business. It is interesting to note that Intel made this announcement after Apple settled with Qualcomm. The settlement indicated that Apple was again using Qualcomm modems in its upcoming Apple iPhone devices. In fact, Intel CEO Bob Swan directly clarified that the settlement was the reason Intel was exiting 5G modem segment. According to a VentureBeat report, Intel immediately started looking for potential buyers for its 5G mobile modem business.

Taking a closer look, this deal makes sense both for Apple and Intel. After all, Apple is the only customer of Intel mobile chips in the market. This indicates that Intel is relying solely on Apple to continue to work on developing and innovating its mobile modems. For instance, Intel was the only third-party modem provider for all the Apple iPhone 2018 models. The reason of this exclusivity was the infamous tussle between Apple and Qualcomm over royalty charges.

Apple iPhone with 5G modem coming soon?

The deal will also reduce the amount of effort that Apple may be putting for its in-house mobile modem. Apple will simply need to pour a slightly smaller number of people and money to get things started off the ground. It is also worth noting that there is no information about the timeline of a possible Apple-made 5G modem. In an ideal scenario, Apple may aim to launch its Apple iPhone 2020 devices with 5G modems. Apple may also push its 5G-enabled devices to 2021 if things are not ready for the prime time.