Apple Intel’s: the official release the announcement of apple for its acquisition of intel’s smartphone modem business, this includes intellectual property, equipment, and leases. The deal is valued at a massive $1 billion and all 2,200 Intel employees working on the modem will now be working with Apple.
Apple Acquires Intel’s Modem Business For $1 Billion
Apple develops its own processors such as the A12 bionic used on the iPhone Xs, but the company depends on Intel and Qualcomm for its network connectivity. Qualcomm has been in a long-running dispute over patents and royalties, which made settle for Intel’s smartphone modem. The dispute was eventually resolved, resulting in Intel announcing it would no longer consider making 5G smartphones.
With this development, analysts quoted by Bloomberg says Apple in-house modems which will begin development is expected to be ready in three years’ time.
Currently, Qualcomm remains the only 5G modem maker for Android smartphones who wants to adopt the technology.
Acquiring another business to develop an in-house competitor is a tactic Apple has used at least once before when it spent $300 million to acquire part of Dialog, a company that previously supplied Apple with power management chips for its phones. The time of the acquisition, which included 300 employees, was Apple’s biggest ever in terms of headcount.