Apple buys Intel's Smartphone Modem Business for USD $1 Billion

Apple buys the 'majority' of Intel's smartphone modem business

Apple has signed a deal with Intel to acquire the Intel's smartphone modem business at $1 Billion.

In a statement, Apple says that more than 2200 Intel employees will join Apple, along with the intellectual property, leases, and equipment. Intel had been a supplier of modems for the Apple iPhones.

Executives Opinion

Intel CEO Bob Swan said, "This agreement enables us to focus on developing technology for the 5G network while retaining critical intellectual property and modem technology that our team has created. We have long respected Apple, and we’re confident they provide the right environment for this talented team and these important assets moving forward. We’re looking forward to putting our full effort into 5G where it most closely aligns with the needs of our global customer base, including network operators, telecommunications equipment manufacturers, and cloud service providers."

Apple’s senior vice president of Hardware Technologies, Johny Srouji, said, “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 differentiate further moving forward.”

More on the Acquisition

Apple mostly focused on acquiring small startups instead of spending on companies. Moreover, the deal with the Intel revealed the companies intensified efforts of decreasing its reliance on the Qualcomm, with which it has reached to a licensing agreement earlier this year that entailed the Apple being supported by the modems created by the chipmaker until 2025 with the ability to extend the contract for more than two years.

In April 2019, Qualcomm and Apple agreed to dismiss all litigation between both companies worldwide. Both companies then agreed on global patent license agreement and a chipset supply agreement.

The deal will be closed in the fourth quarter 2019 subject to the regulatory approvals, notes the announcement.

P.C: Pablo, Unsplash

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Udit Agarwal Opinions expressed by techsutram contributors are their own. More details

Udit Agarwal is a Digital Marketer and a Content Marketing Specialist, He enjoys technical as well as non-technical writing. His passion and urge for gaining new insights on gadgets, smartphones and technology has led him to Techsutram. He quenches his thirst for technology through his action oriented writing skills and a profound ability to stay up to date with latest industry trends.

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