Updated Jul 25, 2019

Apple to buy Intel's cellular modem business

Illustration: Rebecca Zisser/Axios

Apple on Thursday agreed to buy the majority of Intel's smartphone-modem chip business for $1 billion.

Why it matters: Apple will get to control more of its own supply chain. It's also a disappointment for Qualcomm, which is just now getting back Apple's modem business after settling its long-running legal dispute with the iPhone maker.

Under the deal:

  • About 2,200 Intel employees will join Apple.
  • Apple will also acquire many of Intel's cellular-related patents, along with some leases and equipment.

The deal had been widely anticipated, though, after that settlement. The day the deal was signed, Intel announced it was ending plans to develop a 5G modem chip and weighing the future of its modem chip business.

With Apple being the only major customer for a standalone modem chip, it didn't make sense for Intel to keep going in the business. (Most phone makers either make their own modem chips or use an integrated processor and modem from Qualcomm.)

Yes, but: Qualcomm will still have Apple's modem business for a while, thanks to the multiyear chip deal it signed as part of the legal settlement. It will also take Apple's in-house team a while to get its own 5G modem chips ready.

Separately: Intel posted quarterly results that exceeded expectations and raised its full-year earnings estimate. Its stock price rose in after-hours trading.

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Coronavirus dashboard

Illustration: Aïda Amer/Axios

  1. Global: Total confirmed cases as of 3 a.m. ET: 5,410,228 — Total deaths: 345,105 — Total recoveries — 2,169,005Map.
  2. U.S.: Total confirmed cases as of 3 a.m. ET: 1,643,499 — Total deaths: 97,722 — Total recoveries: 366,736 — Total tested: 14,163,915Map.
  3. World: White House announces travel restrictions on Brazil, coronavirus hotspot in Southern Hemisphere Over 100 coronavirus cases in Germany tied to single day of church services — Boris Johnson backs top aide amid reports that he broke U.K. lockdown while exhibiting symptoms.
  4. Public health: Officials are urging Americans to wear masks headed into Memorial Day weekend Report finds "little evidence" coronavirus under control in most statesHurricanes, wildfires, the flu could strain COVID-19 response
  5. Economy: White House economic adviser Kevin Hassett says it's possible the unemployment rate could still be in double digits by November's election — Public employees brace for layoffs.
  6. Federal government: Trump attacks a Columbia University study that suggests earlier lockdown could have saved 36,000 American lives.
  7. What should I do? Hydroxychloroquine questions answeredTraveling, asthma, dishes, disinfectants and being contagiousMasks, lending books and self-isolatingExercise, laundry, what counts as soap — Pets, moving and personal healthAnswers about the virus from Axios expertsWhat to know about social distancingHow to minimize your risk.
  8. Other resources: CDC on how to avoid the virus, what to do if you get it, the right mask to wear.

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Updated 2 hours ago - Politics & Policy

U.S. coronavirus updates

Data: The Center for Systems Science and Engineering at Johns Hopkins; Map: Andrew Witherspoon/Axios. This graphic includes "probable deaths" that New York City began reporting on April 14.

The CDC is warning of potentially "aggressive rodent behavior" amid a rise in reports of rat activity in several areas, as the animals search further for food while Americans stay home more during the coronavirus pandemic.

By the numbers: More than 97,700 people have died from COVID-19 and over 1.6 million have tested positive in the U.S. Over 366,700 Americans have recovered and more than 14.1 million tests have been conducted.

World coronavirus updates

Data: The Center for Systems Science and Engineering at Johns Hopkins; Map: Axios Visuals

Japan's economy minister outlined plans on Monday to end the nationwide state of emergency as the number of new novel coronavirus cases continues to decline to fewer than 50 a day, per Bloomberg. Japan has reported 16,550 cases and 820 deaths.

By the numbers: Over 5.4 million people have tested positive for the virus as of Monday, and more than 2.1 million have recovered. The U.S. has reported the most cases in the world (over 1.6 million from 13.7 million tests). The U.K. is reporting over 36,800 deaths from the coronavirus — the most fatalities outside the U.S.