3 reasons why Apple spent a billion bucks on Intel’s smartphone modem business

The race to 5G just added a new lane. Following a report in the Wall Street Journal in late July, Apple announced that it will be acquiring the majority of Intel’s smartphone modem chip business, which went belly-up earlier this year. The transaction is valued at $1 billion and is expected to close in the fourth quarter of this year, Apple said in a press release.

Intellectual property exchanging hands between industry giants isn’t exactly earth-shattering news, but this deal has when Apple and Qualcomm settled their longtime court case and Intel “announced its intention to exit the 5G smartphone modem business and complete an assessment of the opportunities for 4G and 5G modems in PCs, internet of things devices and other data-centric devices.”