The race to 5G may have just added a new track. According to a report by Wall Street Journal Apple and Intel are engaged in serious conversations about the latter's smart phone modem business, which went in the stomach earlier this year.
Intellectual property that exchanges hands between industry giants is not exactly earth-shattering news, but this agreement has significant implications. Just three months ago, Apple and Intel were partners for the development of the iPhone's 5G modem, but it suddenly ended in one case when Apple and Qualcomm settled their long-standing lawsuit and Intel announced its intention to leave the 5G smartphone modem business and complete one assessment of the possibilities of 4G and 5G modems in PCs, Internet devices and other data centric devices. "
This assessment apparently led to a sale, which in turn led to Apple's interest, according to Journal's report. Although it is not clear why Intel decided to leave the mobile modem business, conventional wisdom suggests that chip development had not come far or fast enough.
So on the surface it would seem that there is nothing to buy, especially for the assumed price of one billion plus. But Apple wouldn't buy Intel's modem boxes. Rather, it will invest for many years of work (and patents) from one of the largest semiconductor manufacturers, as it appears to develop its own 5G chip for future iPhones that can compete with Qualcomms. It's not going to happen ever since Apple and Qualcomm signed a six-year multi-year chip deal agreement in April, but Apple is playing a long game here.
But while the iPhone is clearly the main driver of this deal, I don't think Apple's motivation is limited to the handset. 5G seems to affect all sectors of Apple's product lines, and acquiring Intel's smartphone fashion business – even unfinished – can have far-reaching implications in both Apple and industry.
Perhaps even more important than engineering work would be the people behind the work. The report from specifies that Apple, in addition to Intel's portfolio of patents, will also acquire an infusion of talent from the team responsible for the development of the chip. That alone can be worth billions. It's no secret that technology companies' most valued assets are the engineers working for them, and bringing a finished team of chip designers into Apple Park for work on the A14 chip and beyond would save Apple many years of hiring and reorganization.  a13 mockup "width =" 1200 "height =" 799 "data-imageid =" 100793824 "data-license =" IDG "/> IDG integration will be the key to the development of thinner, faster and More Powerful Chips.
integration will be the key to the development of thinner, faster and More Powerful Chips.
But it's not the iPhone that can make the most of an integrated 5G modem, a more efficient S-chip, which strengthens Apple Watch, is the key to future generations of Apple's notebooks, especially when power-hungry 5G Comes with an integrated 5G modem, chips will be smaller and more efficient, two areas of intense focus for Apple, as it stands, the modem and main processor are separate devices and will continue in the vein as long as it continues to purchase their modems from Qualcomm. Integration is one of Intel's strongest suits, and it will be even more important when 5G begins to take off.
As 5G phones and devices spread over the next few years, it is also certain that it is an uptick in lawsuits Apple, Samsung, Intel and any other technical giant is all subjected to so-called patent controls, companies that seek patents with the sole purpose of using them to sue other companies that may violate them. It is impossible to say which patents are included in this agreement, but you can bet that they will be used for junk lawsuits in wrong hands. It's probably not the primary motivation for Apple's purchase, but it wouldn't be the first time anyone picked up a bunch of patents to keep them out of the wrong hands.
While Apple has not yet released a laptop with LTE connectivity, it is likely to change with the arrival of 5G. It's not just the speed – as the iPad OS gets more Mac features, it's probably a new device on the horizon that sits between the iPad Pro and the MacBook Air. We don't know how this device will look, but I'm willing to bet on two things: it will be powered by an Apple chip and it has 5G connectivity.
We are probably years away from such a device, and I do not think it is coincidental that the reported Intel and MacBook pensions are coincidental. Once in the next 3-5 years, I think we're going to see a brand new Apple device that solves two long-standing issues: the iPad's inability to replace the Mac, and the Mac's lack of touchscreen. With a 5G modem, the next MacBook will be the ultimate road machine and combine the power of a Mac with the portability of the Mac into a thin and lightweight package, and Intel's modem business can be the thing to get the ball rolling.