Apple has been investing in its own mobile chips to ramp up performance of its devices and also reduce its dependence on Qualcomm.

Apple in advanced talks to buy Intels smartphone chip unit
Atom Tech Shorts Thursday, July 25, 2019 - 13:46
Written by  S. Mahadevan

With Apple Inc and Qualcomm deciding to bury the hatchet and work together for the next generation 5G chipset, one would have thought the rivalry ended. Latest information however indicates there could be an all new war of a different kind between the two. It is said Apple may take over Intel’s smartphone chip making unit.

Apple has never hidden its preference to have its own chipsets for its premium iPhones and other devices. The company possesses the technology and the patents to develop the best chips as evidenced by the premium price it is able to command for its brand products. Apple even dragged the largest chipmaker Qualcomm to courts all over and then tried encouraging Qualcomm’s rival Intel to make the high-end chips. Obviously, Intel failed in its attempts to catch up with Qualcomm and once Apple decided to go back to Qualcomm, intel also made a public announcement that it is no longer in the race for the 5G chips.

Apple decided to delay its plans to enter the 5G space until 2020 and it is now expected that the iPhones 12 to be launched in September 2020 may be capable of being used on the 5G platform. There are some who suggest all three models to be released next year will be 5G-ready.

The current reported move to buy over Intel’s chip making unit will come as a shot in the arm for Apple since it will greatly reduce its dependence on third parties for the most important component in the smartphone. The company can then control the deliveries, prices and the technology.

Wall Street Journal that broke this story of Intel’s smartphone chip making unit being taken over by Apple feels the deal could be valued at around $ one billion.

Become a TNM Member for just Rs 999!
You can also support us with a one-time payment.