Apple tried to win the 5G race and paid $1 billion to Intel

Apple making efforts to win the race of 5G and paid $1b to Intel

Apple was worried that it might lose the battle of 5G Qualcomm, whereas now the firm is in a position to win the race. On Thursday, Apple stated that it would purchase the smartphone model business of Intel that consists of many patents and around 2,000 employees of Intel at the cost of $1 billion.

On the other side, it is apparent that Apple has the interest to develop its own modems for the iPhone and have an interest to obtaining everything that Intel IP puts in a position to attain one ready by the time its contract with Qualcomm runs out.

Four Worst Options for Apple

After settling the royalty fight with Qualcomm runs out, Apple had four bad options when it moves toward its 5G plan that written below:

  • Option Number 1: Make settlement with Qualcomm and take its chips of 5G into iPhones till 2020.
  • Option Number 2: Wait for Intel to get closer to its 5G modems that said to run after agenda.
  • Option Number 3: Choose 5G modems of 5G that may allow a difficult sell in the current environment because of the cybersecurity concerns and trade tensions.
  • Option Number 4: Apple creates its own chips of 5G that might take many years due to which Apple left behind from other handset competitors that are already in the race that are releasing 5G phones in the present year.

Apple tried to win the 5G race and paid $1 billion to Intel

That is the reason Apple go through the least of all negative approaches. It makes a deal to go with Qualcomm and start the long-term plan to create its own modems. In the meantime, Intel pushed outback from its policies of 5G modem when Qualcomm and Apple signed their agreement and assets become comparatively attractive and economical for Apple to boost up and take the initiative to develop its own chips.

Apple Settlement of April

In settlement of April, Apple settled to use modems of Qualcomm for coming six years as well as a possibility to extend the contract for two more years. That provides Apple about eight years to make flawless modems of smartphones as Intel was facing the difficulties and get them up to balance with the technology of Qualcomm. Despite the fact, Intel has a background of developing modems that did not perform along with Qualcomm. Whereas, now Apple has too much time to develop the technology better before the time passes.

Read Also: How 5G will Change our Daily Life

Furthermore, Apple has another edge that it is taking the services of Johny Srouji in the department of SVP of hardware technologies. Srouji that great person who makes able Apple into that firm that are developers of few of the best-performance mobile processors of the world.


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