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apple took a major step toward supplying its own smartphone ships with the purchase of Intel's modem chip business the deal announced Thursday is valued at a billion dollars it's apple's biggest acquisition since it bought beats electronics for over three billion dollars in twenty fourteen twenty two hundred Intel employees will join apple as part of the deal Reuters Stephen Ellis a modem chip is a big part of what makes your smartphone smart specifically it connects your phone to the internet over wireless data networks like three G. four G. and five G. so it's a big component of the phone but apple has always had to rely on outside companies to supply it specifically for a long time %HESITATION light on qual com apple gotten a huge legal fight with Qualcomm and over the past year or so actually trained in cell to be its sole supplier meanwhile some of apple's biggest rivals like wall way in Sam son have their ability to make their own modems so they don't have to rely on an outside from what qual com or Intel apple CEO Tim cook has said in the past that the company wants to control the primary technologies behind the products it makes and as the telecom industry heads into the five G. rollout the stakes are getting higher these modem ships are very difficult engineering take years to come up with an apple has a very aggressive goal one industry source tells me that apple plans to use the five G. modem from Quoc conference twenty twenty phones the wants to have a working chip of its own as soon as twenty twenty one now that might sound like a long time from now for regular folks but for the people in this industry they would tell you that's extreme way ambitious and aggressive and apple was probably looking to put those Intel assets to use to try to get there still apples relationship with Qualcomm won't end there apple has a years long chip deal with Qualcomm and wanted Destry source told Reuters the iPhone maker is likely to continue you , zing those chips in its flagship models even if it raises in its own chips for lower end and older models