Observed Signal · Jul 23, 2019 · Acquisition · Source: OnlineMarketing.de · Impact: 3/5 · Sentiment: Neutral
Apple in Talks to Buy Intel's 5G Modem Unit
Based on a Wall Street Journal report, Apple is in advanced negotiations to buy Intel's smartphone modem business for about $1 billion. The deal would include Intel's 5G modem technology, related patents, and the personnel behind the unit. The sale follows Intel's decision to exit the modem business due to obsolescence, as Apple had been reducing reliance on Intel for iPhone modems. The Verge notes that Apple’s move appears motivated by a desire to develop an in-house modem capability, potentially reducing dependence on Qualcomm. A formal announcement could come as early as next week. If completed, the acquisition would mark a significant step in Apple’s strategy to internalize 5G modem development, potentially altering supplier dynamics in the mobile modem market and affecting Intel's remaining modem operations.
Potential industry-shifting move toward in-house modem development; could affect supplier dynamics in the mobile modem market
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Key Takeaways & Evidence Grounding
- Apple in advanced negotiations to acquire Intel's smartphone modem business for about $1 billion
- Deal would include Intel's 5G modem technology, patents, and employees
- Intel reportedly sold the unit after deciding to exit the 5G modem business as it became obsolete
- Apple has a multi-year partnership with Qualcomm; acquisition signals move toward in-house modem development
- Announcement could come next week
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4 Entities mappedRelated Market Signals & Shifts
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Intel Near Deal to Make Apple Chips
Reports say Apple and Intel have reached a preliminary agreement that would have Intel manufacture some of Apple’s device chips. The potential deal—first reported by the Wall Street Journal and cited by CNBC—would mark a major validation for Intel’s foundry push and create a viable second source to TSMC for Apple’s most advanced chips. The article notes Intel is ramping capacity at a new Arizona fab producing on its 18A node (with an improved 18A‑P node expected later) while Apple has been solely reliant on TSMC. Analysts suggest the deal addresses wafer-capacity constraints driven by surging AI demand and could reshape advanced-node supply dynamics if finalized.
Apple Plans Five iPhones Through 2027, Eyes Chinese Chips
Apple plans to introduce at least five new iPhone models between the second half of 2026 and the first half of 2027, and has increased its planned production of foldable iPhones to about 10 million units, Nikkei Asia reported. The company has secured components for roughly 80 million smartphones for H2 2026 and its total smartphone production for 2026 is expected to exceed 220 million units. Bloomberg reported Apple is in talks to source memory chips for devices sold in China from Chinese manufacturers ChangXin Memory Technologies and Yangtze Memory Technologies; those negotiations were described as ongoing and Apple has not confirmed them. The reporting frames these moves against an industrywide memory shortage driven by AI datacenter demand and notes Apple’s scale gives it stronger sourcing power than many Chinese rivals.
US Government Seeks to Block Apple Chip Purchases from China
The Trump administration said it does not want Apple to purchase memory chips from Chinese suppliers, according to Commerce Minister Howard Lutnick in an interview with the Wall Street Journal. Lutnick conveyed the message after touring a new Apple facility in Houston attended by Apple CEO Tim Cook. The report says Apple has been testing memory chips from Chinese firms CXMT and Yangtze Memory Technologies amid a global chip shortage driven by AI datacenter demand. The article also notes laptop makers HP and Acer have begun using CXMT chips in devices sold outside the U.S., and that Apple is reportedly developing a China-specific large language model with support from Alibaba.
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