$1 billion for Intel's 5G business, why is Apple crazy about it?

Apple announced that it will be buying Intel's cellular modem business for $1 billion. The transaction is expected to close by the last quarter of 2019. The acquisition would include a corporate exchange of about 2,200 employees from Intel with the transfer of IP and equipment to Apple.

The envelope to the deal will enclose about 17,000 wireless patents on protocols for cellular standards, modem architecture, and operations. The deal also signs amendments stating that Intel will be allowed to develop modems for PCs, IoT devices and autonomous vehicles.

The acquisition will allow Apple to build 5G modems for its smartphones rather than depending on Qualcomm for the hardware. The iPhone major though signed the deal with Intel; it will rely on Qualcomm's hardware until the patent license agreement of six years between the two companies comes to an end.

Apple had been using hardware from both, Intel and Qualcomm till last year when they closed a deal with Qualcomm to solely produce cellular modems for their devices. Intel had been struggling since then without any buyer for its products.

Apple had been trying to relieve itself from all third-party collaborations and focused on in-house manufacturing of the modems. It has been working on the modem technology for years through its research and development (R&D) centres in San Diego.

According to some reports, the iPhone manufacturer will be able to complete its research and development to produce its own modems by 2022. So, there might be good news for the users as the research and development on modems might bring variations in the i-devices.