Apple Completes Purchase Of Intel’s $1 Billion Smartphone Modem Business Following the announcement in July of acquisition negotiations with Apple for its smartphone modem business, Intel today announced that it has completely sale of its smartphone modem business to Apple for $1 billion under regulatory approval.
Apple acquired Intel’s current intellectual property, equipment and approximately 2,200 employees. The transaction has enabled Apple to obtain a large number of wireless patents from Intel, and Cupertino now has more than 17,000 wireless technology patents, ranging from cellular standard protocols to modem architecture and modem operation.
Intel has admitted that the selling of its mobile modem company to Apple caused “a multi-billion-dollar loss” on its own. Nevertheless, the chipmaker retains the ability to develop modems for non-smartphone applications such as PCs, IoT devices, and autonomous vehicles.
Intel Corporation today announced it has completed the sale of the majority of its smartphone modem business to Apple. This transaction, valued at $1 billion, was announced on July 25, 2019. As previously disclosed, this transaction enables Intel to focus on developing technology for 5G networks while retaining the option to develop modems for non-smartphone applications, such as PCs, internet of things devices and autonomous vehicles.
Qualcomm’s licensing agreement with Apple stifled competition and effectively forced itself out of the sector, Intel suggests. And as part of a six-year license agreement between the two companies, Apple is expected to use Qualcomm modems in its first 5G-enabled iPhone next year.
There are also many indications that Apple plans to develop its own iPhone 5G modem by 2022-2023, and this deal with Intel will arguably help these efforts.