Apple to Buy Intel Modem Unit to Jumpstart In-House 5G Plans

The video discusses Intel's recent profit increase due to shedding core businesses like the modem unit and a rise in PC sales. Apple has acquired Intel's modem unit for $1 billion to enhance its own modem business, leveraging patents and engineering talent. This acquisition affects Apple's supplier relationships, particularly with Qualcomm, as Apple aims to reduce dependency on Qualcomm for modems.

What is one reason for Intel's higher profit margins?

• Decreased competition in the market

• Shedding core businesses like the modem unit

• New product launches

• Increased smartphone sales

Why did Apple decide to purchase Intel's modem unit?

• To eliminate competition

• To acquire patents and engineering talent

• To expand into the PC market

• To reduce production costs

How much did Apple pay for Intel's modem unit?

• $500 million

• $1 billion

• $2 billion

• $5 billion

What is the impact of the acquisition on Apple's relationship with Intel?

• Apple increases dependency on Intel

• No change in the relationship

• Intel is no longer a customer

• Intel becomes a major supplier

What might change in Apple's relationship with Qualcomm due to the acquisition?

• Apple will increase its reliance on Qualcomm

• Apple may not renew its agreement with Qualcomm

• Qualcomm will become Apple's primary supplier

• Apple will acquire Qualcomm