Apple to buy Intel’s smartphone modem business
For quite some time, Apple has been looking for ways to reduce its dependence on Qualcomm for smartphone modems. It used Intel parts in its handsets alongside Qualcomm’s for a few years.
However, after the two companies reached an agreement a few months ago, Intel was pushed out. They were forced to exit the 5G modem business having no other customers lined up.
Apple has now seized the opportunity and acquired Intel’s smartphone modem business. The Cupertino company will pay $1 billion for this acquisition, while the transaction will close in Q4 this year. Approximately 2,200 Intel employees working on mobile modems will join Apple, along with intellectual property, equipment, and leases.
Once the deal finalizes, Apple will become the holder of over 17,000 wireless technology patents. These patents include everything from cellular standard protocols to modem architecture and operation. This deal involves only Intel’s smartphone business. The company will still be able to develop modems for PCs, IoT devices, and autonomous vehicles – everything except smartphones.
With this move, Apple will thus bring a big modem development team in-house. This should help them develop their own solutions for use in future iPhones. This will “allow Apple to further differentiate moving forward”, according to Johny Srouji, Apple’s senior vice president of Hardware Technologies.