Apple, through a blog post, announced on Thursday that it is going to acquire the majority of Intel’s smartphone modem business. According to the post, over 2200 Intel employees will switch to Apple. The agreement between Apple and Intel also includes the acquisition of IP and equipment from Intel and the payable amount for Apple is set to be $1 billion.
The deal between Apple and Intel is no surprise for most of the people, as there have been rumours making rounds that Apple will be taking over the Intel’s modem business so that it will not have to rely on other companies for the modems for its smartphones.
After the deal is closed, Apple will be independently building its own 5G modems for iPhones. Recently the company settled its dispute with its longtime modem supplier Qualcomm. But it seems Apple is no more interested in taking the help of a third party supplier for the equipment. The company will also be taking over the right on Intel’s 17,000 wireless technology patents.
“We’ve worked with Intel for many years and know this team shares Apple’s passion for designing technologies that deliver the world’s best experiences for our users. Apple is excited to have so many excellent engineers join our growing cellular technologies group, and know they’ll thrive in Apple’s creative and dynamic environment. They, together with our significant acquisition of innovative IP, will help expedite our development on future products and allow Apple to further differentiate moving forward.” said Johny Srouji SVP Apple.
Apple leads towards in-house production
Apple and Intel broke the news two months after the former made a settlement with Qualcomm in April. In fact, Intel had also announced that it plans to stop all its operations of producing smartphone modems after the two companies had ended their years’ long-running dispute. However, Intel will still be developing the modems for PCs, laptops, Internet of Things, etc.
According to Apple, the two companies will close the deal by the end of 2019, after going through all the legalities. Beliving the rumours, Apple may start 5G modem production as soon as the mid of 2020. The deal will lead Apple towards in-house production, and this way, it can focus better on the quality of its products as well as save a lot of money.
Yashica is a Software Engineer turned Content Writer, who loves to write on social causes and expertise in writing technical stuff. She loves to watch movies and explore new places. She believes that you need to live once before you die. So experimenting with her life and career choices, she is trying to live her life to the fullest.