After a high-intensity battle over royalty payment dues, Apple and Qualcomm settled over a deal in 2019. This effectively wiped Intel out of the 5G smartphone modem business. And now, it looks like Qualcomm might also lose a big chunk of revenue in the future as Apple starts developing its own cellular modem.

As Bloomberg reports, Johny Srouji, Senior VP of Apple Hardware Technologies made the announcement in a meeting with company’s employees. Precisely, he says that the company kicks off the first internal cellular modem development. Accordingly, this decision will have a key impact someday in the future if not today.

Citing this as another strategic transition, he says the $1 billion acquisition of Intel‘s modem business helped them build a team of engineers. If we call, apart from hiring Intel’s 5G mobile technology head, the company actively hired engineers from Qualcomm as well. Adding to the tally of wireless chips, he also said that this modem will join Apple’s W-series(Apple Watch) and iPhone‘s U1 ultrawide-band chips.

In case you don’t know, a cellular modem is essential to a Smartphone. It makes calls, and internet connection possible via wireless cellular networks. And now, Qualcomm might be in danger of losing revenue(11% as of now) from Apple. This is because Apple’s self-reliance has pushed it to invest in processor, camera chips, and now cellular modems.

Besides, after Qualcomm acquired the deal of supplying 5G modems to Apple, Intel reported a multi-million dollar loss and accused the former of anti-competitive practices. However, it looks like Qualcomm will be in a similar situation in the future. As a head start, report says Qualcomm’s shares dropped about 4.4% in New York on Friday(December 12) at 9:37 AM(GMT+5:30).

Although this is a momentary lapse, the company should be wary of Apple’s goals here. Currently, iPhone 12 series including iPhone 12 mini, 12, 12 Pro, 12 Pro Max use Qualcomm’s 5G modems. Anyway, it has a deal that makes Apple procure its 5G modems at least until 2024. This suggests that Apple’s own cellular modem won’t be featuring on its devices anytime soon.

Apart from the cellular modem and recently launched M1 chip, Srouji says Apple is working on a ‘family’ of Mac chips. It is reportedly planning to oust Intel’s fastest chips hinting at the processors up to 32-cores.

UP NEXT: Apple to embed Antennas and Touch ID in the display: Report

The post Apple kicks off its own cellular modem development; trouble for Qualcomm? appeared first on Gizmochina.

Apple is said to be in the advanced stages of making a deal with Intel for its modem business,  the Wall Street Journal reported on Thursday. This report comes a couple of months after Qualcomm and Apple announced a truce to ensure steady supply of its modems for the upcoming iPhones.

The deal is said to cover Intel’s portfolio of patents and staff in its modem business valued at $1 billion. An official announcement is expected sometime in the next week when the deal could be finalized. Buying off Intel’s modem business would be crucial for the iPhone maker as it would speed up plans for its inhouse modem development. The company has been looking to setup a similar department to its inhouse chip development team for its modem business. This would ensure it’s capable of developing and using inhouse modem chips for future iPhone models. The company has already hired engineers and executives, some of whom are from Intel for this purpose.

Editor’s Pick: ASUS ROG Phone 2 arrives with a 120Hz display, Snapdragon 855+, and a massive 6000mAh battery

Getting access to Intel’s talent and patents in the modem business would give a solid boost to its inhouse modem development plans. This is particularly important in the next couple of years where 5G will become an important cellular network technology for smartphones.

As for Intel, this would be a very good opportunity to shed off a loss-making business unit. After Apple and Qualcomm made a deal back in April, Intel was quick to announce its departure from the modem business for smartphones. This wasn’t surprising given Apple was the semiconductor giant’s biggest customer and it didn’t make sense to continue running the business without the iPhone maker. To recall, Intel was the sole third-party modem provider for last year’s iPhone models.

If this deal goes through, expect an official announcement from both the companies in the coming weeks.

UP NEXT: Apple Watch saves UK man’s life by promptly detecting low heart rate

(Source)

The post Apple is said to be close to buying Intel’s Modem Business for $1 billion appeared first on Gizmochina.