Apple in ‘advanced talks’ to buy Intel’s smartphone chip business
Apple is said to be in advanced talks to buy Intel’s smartphone-modem chip business in a deal worth at least $1bn (£804m).
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The tech giant is discussing the purchase with the chipmaker and a deal could be reached in the next week, the Wall Street Journal reported.
Intel announced earlier this year that it would exit the 5G modem chip business after Apple settled a two-year legal dispute with Qualcomm, a key supplier of iPhone chips.
In a surprise settlement, Qualcomm and Apple agreed to continue working together, leaving Intel in the lurch.
Intel reportedly began exploring a sale following the deal, saying it saw no path to future profitability, with Apple slated as the most likely buyer.
A sale to the iPhone manufacturer would grant Apple access to a range of staff and products, while Intel would be able to offload a loss-making part of its business.
Shares in Intel rose roughly two per cent in pre-market trading, while Apple stock also ticked up marginally. Qualcomm, which could lose a lucrative contract if the deal goes ahead, dropped more than two per cent on the reports.
Intel is expected to report second-quarter results later this week, while Apple is scheduled to report its third-quarter earnings on 30 July.
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Intel declined to comment. Apple did not respond to a request for comment.
Main image credit: Getty