Apple and Intel are two of the world’s largest names in technology. Apple has molded today’s technology with its innovative goods such as iPhone, iPad, iPod, and Mac. On the other hand, Intel, with their advanced line of Core Processors for Desktops and PCs, Atom for Smartphones and Tablets, and flash-storage products, has also enhanced our way of life using technology.

Intel, however, is set to lose one of its main revenue streams as its department developing modems for smartphones is reportedly being sold to Apple.  

It was recently disclosed that Apple will be buying the smartphone modem operations of Intel.

Included in the purchase deal are the latter’s intellectual properties, machinery, and leases. The employees working in the department will also start working for Apple once the deal pushes through. 

The acquisition is said to be valued at USD 1 billion.

The deal is also projected to be finalized by the end of this year. The revolutionizing capabilities of Apple and the technology that Intel has made in their smartphone modems should set forth bigger innovation offerings coming from Apple. With this, consumers should expect something big from the tech giant soon. 

The patents for the wireless systems invented by Intel also form part of the merger. This adds to the present Apple patent collection of more than 16,000 innovations.

However, Intel still maintains the department which creates modems for personal computers, and self-driving cars, and IoT devices.

Apple will now use Intel-developed modems for its future smart device models, such as the iPhone and the iPad.

And with 5G technology already being laid out, the company is speculated to integrate the newest mobile internet standard into future versions of the iPhone. The result will be an ultra-fast processing system that will make better versions of the iPhone.