Apple is reportedly in talks to buy Intel's smartphone-modem chip business for $1 billion (AAPL, INTC)

Apple is in talks to buy Intel's smartphone-modem chip business, The Wall Street Journal reported on Monday.

The iPhone maker is looking to acquire Intel's patent portfolio in a deal valued at $1 billion, the report said, citing unnamed sources. A deal could be reached in the next week, the report said.

Intel stunned the tech world in April when it announced that it was getting out of the 5G smartphone-modem business. "It has become apparent that there is no clear path to profitability and positive returns," Intel CEO Bob Swan said in a statement when the move was announced.

For Apple, buying Intel's smartphone business would give it greater control over a key component used in its devices, especially if and when it begins manufacturing 5G-compatible iPhone models.

The two companies had discussed a deal in the past, but the talks are said to have fallen apart when Apple signed a separate deal with Qualcomm, for a six-year license agreement and a multiyear chipset-supply agreement, The Wall Street Journal reported. The companies also agreed to drop all litigation against one another.

Intel declined to comment. Apple was not immediately available for comment.

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