FILE PHOTO: The logo of Apple is seen at a store in Zurich, Switzerland January 3, 2019. REUTERS/Arnd Wiegmann
(Reuters) – Apple Inc (AAPL.O) is in advanced talks to buy chipmaker Intel Corp’s (INTC.O) smartphone-modem chip business, the Wall Street Journal reported on Monday, citing people familiar with the matter.
Assuming talks don’t fall apart, the deal, valued at $1 billion or more, could be reached in the next week, according to the WSJ. (on.wsj.com/2Yi5E6H)
Intel announced it would exit the 5G modem chip business in April, hours after Apple settled a longstanding legal dispute with Qualcomm Inc (QCOM.O), a key supplier of iPhone modem chips.
The Journal had reported in the same month that Intel was exploring a sale for its modem chip business to Apple or another acquirer.
While Apple declined to comment, Intel did not respond to a Reuters request for comment.
Shares of Intel rose 1.5% to $52.10, while those of Apple were up marginally in extended trading. Qualcomm’s shares were down about 2% on the report.
Intel is expected to report second-quarter results on July 25, while Apple is scheduled to report its third-quarter earnings on July 30.
Reporting by Vibhuti Sharma in Bengaluru; Editing by Sriraj Kalluvila and Anil D’Silva