Apple Considered Purchasing Intel's Smartphone Modem Chip Business

Apple reportedly considered acquiring parts of Intel's smartphone modem chip business as they looked into ways to speed up their own efforts to build modem chips for smartphones. MacRumors reports: Intel and Apple entered into discussions last summer and the talks continued for months, but ended right around the time Apple settled its legal dispute and reached a supply agreement with Qualcomm. Sources at Intel that spoke to The Wall Street Journal said that Intel is exploring 'strategic alternatives' for its smartphone modem chip business, and is still interested in a sale to Apple or another company.

In an interview yesterday, Intel CEO Bob Swan confirmed that Intel is considering alternatives 'based on what's best' for Intel's IP and employees: 'Selling the modem business would allow Intel to unload a costly operation that was losing about $1 billion annually, according to another person familiar with its performance. Any sale would likely include staff, a portfolio of patents and modem designs related to multiple generations of wireless technology, said Patrick Moorhead, principal at Moor Insights & Strategy, a technology firm.'

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