Apple and Intel have signed an agreement for Apple to acquire the majority of Intel’s smartphone modem business, valued at $1 billion, is expected to close in the fourth quarter of 2019. The transaction is expected to close toward the end of the year.
Collectively, Apple will hold over 17,000 wireless technology patents, ranging from protocols for cellular standards to modem architecture and modem operation. Intel will retain the ability to develop modems for non-smartphone applications, such as PCs, internet-of-things devices and autonomous vehicles.
This agreement will focus on developing technology for the 5G network while retaining critical intellectual property and modem technology including network operators, telecommunications equipment manufacturers and cloud service providers.
They, together with significant acquisition of innovative IP, will help expedite the company’s development on future products and allow Apple to create a cutting edge.
Apple revolutionized personal technology with the introduction of the Macintosh in 1984 and leads the world in innovation with iPhone, iPad, Mac, Apple Watch and Apple TV. Apple’s four software platforms — iOS, macOS, watchOS and tvOS — provide seamless experiences across all Apple devices and empower people with breakthrough services including the App Store, Apple Music, Apple Pay and iCloud.
Intel, a leader in the semiconductor industry, is shaping the data-centric future with computing and communications technology that is the foundation of the world’s innovations. The company’s engineering expertise is helping address the world’s greatest challenges as well as helping secure power and connect billions of devices and the infrastructure of the smart, connected world – from the cloud to the network to the edge and everything in between.
Developing its own modems has the potential to deliver big benefits for Apple. It would allow the company to develop modem technology at its own pace, better integrate those modems with its products, and develop new features that set its devices apart. That’s the strategy Apple has taken when it comes to smartphone and tablet processors, and it’s led to advancements that put its chip ahead of the industry. The acquisition will also reduce Apple’s reliance on Qualcomm, the dominant supplier of smartphone modems.