Apple to buy Intel’s modem business for $1 billion

Multinational software giant, Apple, confirmed last week that they will be buying Intel’s modem business for $1 billion.

For almost a decade, Apple has been trying to move away from its current mobile modem provider, Qualcomm.

It’s thought around 2,200 employers will be redeployed to the new company as part of the acquisition. Equipment, leases and intellectual property will also be moved over.

Johny Srouji, Apple’s senior vice-president of hardware technologies has said that the purchase will “help expedite our development on future products and allow Apple to further differentiate moving forward.”

5G

The research director at tech market advisory firm ABI Research, Dimitri Mavrakis spoke of how much 5G will be involved in the new move. In a statement, he said: “Apple’s acquisition of Intel’s 5G modem business will not only allow the iPhone manufacturer to gain world-class expertise in cellular modems, which is one of the most challenging areas in R&D, but also allow it to strike better deals with other major 5G patent holders. Apple will also potentially be able to negotiate better terms with its current 5G suppliers as well as integrate parts of the 5G modem into its existing processors,”

He continued, “It is important to note that by inheriting some of the key 5G patents developed by Intel, Apple will be able to differentiate its 5G offering in what will soon be a very highly competitive 5G landscape.”

Intel will still make modems

Intel spoke of how they will still be doing what they know best and in a statement, the company said that, despite the purchase, they will still be building modems for self-driving cars, IoT devices, and computers.

Intel’s chief executive officer, Bob Swan commented, “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,”

The move is hoped to happen at the end of the year “subject to regulatory approvals and other customary conditions, including works council and other relevant consultations in certain jurisdictions.”

 

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