Apple Acquires Intel’s Smartphone Modem Division In A $1 Billion Deal

When Apple ended its tech war with Qualcomm, we all thought that Intel was out of the question and Qualcomm was Apple’s new best friend. However, the Cupertino tech major turned all the rumors into reality and has finally collaborated with Intel.

Apple has acquired the majority of Intel’s smartphone modem division as part of a $1 billion deal, which will close in Quarter 4, 2019. The update was officially announced in a surprise blog post on Thursday.

Apple Intel Acquisition

The collaboration will result in around 2,200 Intel employees joining Apple and Intel’s intellectual property, equipment and leases will be Apple’s property.

Additionally, as part of the deal, Apple will get a hold of around 17,000 wireless charging patents that will include protocols for cellular standards for modem architecture and modem operations.

While Apple has acquired Intel’s smartphone modem arena, the latter will continue to produce modems for arenas such as PC, internet-of-things devices and autonomous vehicles.

What Will Apple Gain From This Acquisition?

For those who don’t know, Apple began using Intel’s modems with the iPhone 7, after it indulged in a legal fight with Qualcomm.

Apple has been hoping to produce its own modems for a while now and the acquisition will help it do just that. The focus will also be on 5G modems, with both Apple and Intel’s areas of expertise.

Apple, Qualcomm, Intel — A Love Triangle?

Since Apple solved its issues with Qualcomm and entered into a multi-year agreement for chipsets, the Intel acquisition is an added advantage for the Cupertino-based company.

Apple will move ahead in the smartphone world, keeping both Qualcomm and Intel close to it for its iPhone hardware, and this will just add onto the power the company has in the tech world.