Apple to buy Intel’s smartphone modem division

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Apple’s acquisition of Intel’s 5G modem business will not only allow the iPhone manufacturer to gain world-class expertise in cellular modems, which is one of the most challenging areas in R&D, but also allow it to strike better deals with other major 5G patent holders.

Apple will also potentially be able to negotiate better terms with its current 5G suppliers as well as integrate parts of the 5G modem into its existing processors.

It is important to note that by inheriting some of the key 5G patents developed by Intel, Apple will be able to differentiate its 5G offering in what will soon be a very highly competitive 5G landscape.

Dimitris Mavrakis, Research Director at tech market advisory firm, ABI Research