Apple Buys Intel’s Modem Tech For $1 Billion; 2,200 Employees Will Move To Cupertino
Well folks, we've got big news today. Cupertino tech giant Apple (NASDAQ:AAPL) has confirmed that it is acquiring Intel's (NASDAQ:INTC) smartphone modem business. The two companies have worked closely on 5G and 4G technology, due to Apple's hesitation of continuing to due business with Qualcomm (NASDAQ:QCOM); a hesitation resulting from high licensing costs. Take a look below for more details.
Apple To Acquire Intel's Smartphone Modem Business For $1 Billion And Hold 17,000 Wireless Patents As A Result
In a press release, Apple has confirmed what was openly speculated in the smartphone industry for quite some time. After the iPhone maker settled its disputes with Qualcomm and agreed to use the latter's technologies in the iPhone for the near future, the company is back with some big news today.
Apple has confirmed that it will acquire Intel's smartphone modem business for $1 Billion. The acquisition will bring the number of wireless patents held by the company to 17,000. Additionally, as a result of the deal, 2,200 Intel employees will join Apple, and the Santa Clara chip maker will also transfer physical assets such as equipment and facilities to Apple.
Intel, on the other hand, has announced that it will continue to develop 5G solutions for markets that are aligned to the company's customer base. Looks like Intel has given up on the mobile market - a wise decision some would say as it continues to come under harsh criticism from certain quarters. As per the press release, Intel will, "retain the ability to develop modems for non-smartphone applications, such as PCs, internet-of-things devices and autonomous vehicles."
Apple will benefit massively due to this deal, as Intel's engineers and designs will give the company a serious leg-up over its primary competitor Qualcomm. While Qualcomm's got years of expertise in manufacturing smartphone modems, Apple's iOS-An chip integration is legendary. Apple's SVP of Hardware Technologies Johny Srouji is optimistic that the culture clash between Apple's existing employees and Intel's team will be smooth.
According to him,
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.
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