According to CNBC, Apple will buy most of Intel's smartphone modem business in the near future. Intel CEO Shreber said that Intel will continue to be an important player in the 5G field.
As the next generation mobile network, 5G can provide ultra-fast data speed and support new technologies such as driverless vehicles. Last week, Apple signed an agreement with Intel to acquire most of Intel's smartphone modem businesses, including technologies related to 5G baseband development, to develop its own 5G baseband. However, Intel can still choose to develop 5G chips for non-smartphone products.
Smith believes the deal is also positive for Intel, as the company can now focus on 5G in other areas.
In an interview, Siruibo explained the considerations behind the deal. He said that for Intel, the 5G modem business is not an area for differentiated growth. Moreover, the business has only one Apple customer, and retaining the business does not provide attractive returns.
He also explained that mobile networks will also be an important area for Intel's future development. Traditionally, Intel has not focused on the telecommunications industry, but has begun to focus on what Siribo calls
Last month, Intel and Rakuten, a Japanese technology group, reached a partnership to build
Intel believes more and more data processing will shift from the cloud or data center to the network in the future, he said.
Intel has been seeking to diversify its business, no longer relying on PC processors, to expand its business to new areas that remain connected all the time, such as unmanned vehicles and Internet of Things devices. The move into telecommunications is only part of Intel's plan.
Although PC-centric product revenue and data-centric product revenue account for about 50% to 50% of company revenue, the balance will change in the future, favoring data-centric chip business, Siruibo said.<#comment>#comment><#comment>#comment>