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Three things to know about Apple's acquisition of Intel's modem business. One is definitely means Apple is really doubling down on 5G and it'll be really interesting to see what happens to iPhone sales in 2019. Now it looks like this 5G phone might be a little bit better now and interesting to see what happens to 2019 and 2020 sales as people expect a good 5G phone in 2020. That's one. Two - Dan Ives, analysts at Wedbush says this might be the beginning of M & A for Apple. Apple has never been big in M & A, and maybe one or two acquisitions. But this one, Ives thinks, is the beginning of M&A for Apple. Definitely be interesting to see if that's true. He thinks that. Number three, Qualcomm - not great for Qualcomm. Qualcomm is down to pre market. This likely means fewer sales to apple from Qualcomm.

Apple's (AAPL - Get Report) impending acquisition of Intel's (INTC - Get Report) modem business has several key implications, one of which is not the best news for Qualcomm (QCOM - Get Report) . 

The deal, if it happens, would be a $1 billion by Apple for the tech behemoth to use the modem's to build out its 5G iPhone for 2020. 

Here are three key points. 

Apple and 5G

Apple is clearly "doubling down" on its 5G iPhone build out, as noted by WedBush Securities Dan Ives in a note. Apple, Samsung and other smartphone players are racing to make the best 5G devices, and some analysts have mentioned this race, in which Apple's 5G model won't be released until 2020, would pressure 2019 iPhone sales. While that may be true, the acquisition does enable Apple to build out its 5G model in a controlled and tailored way. 

Apple and M&A

"For Cook, doing an acquisition of $1 billion would be a change in tune around larger M&A, as we continue to strongly believe this is the start of a much more aggressive Apple going forward on the acquisition front," Ives said. Apple is known for staying away from acquisitions. It acquired Beats headphones many years ago. 

Qualcomm Implications 

Qualcomm (QCOM - Get Report) was losing more than 1%, falling to $75.04 a share in premarket trading, as Apple's clear intent to use Intel's modem's likely means fewer purcahses of Qualcomm's chips. "AAPL building its own modems would certainly weigh on future QCOM revenues, particularly given AAPL's propensity to fully replace 3rd party suppliers when internal parts prove adequate," Ives said. 

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