Apple in talks to buy Intel's $1 billion modem business

• Such a transaction could give Apple access to both patents and the specialized workers needed to eventually design its own modem chips for the iPhone.
• The Wall Street Journal reported on Monday that the talks are advanced and a deal could come this week.

Between the lines: Intel is in something of a bind. Apple is really the only big customer for standalone cellular modems, but its deal with Qualcomm likely means Intel's business will dry up.

• That helps explain why, the day Apple and Qualcomm announced their settlement, Intel said it would cancel planned 5G modem chips and re-evaluate the business.

Our thought bubble: It's hard to imagine anyone other than Apple being interested in acquiring the business. The only other likely outcome — Intel shutting the unit — would have downsides for both companies.

• Intel, of course, would get no return on its expensive investment. Apple could still hire people, but it would have to do so one by one, and it wouldn't get Intel's patents.

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