In a press release released today, Apple announced that it has purchased most of Intel's smartphone modem business. The sale is worth about $1 billion.
As part of the agreement, approximately 2,200 Intel employees will become part of the Apple team, which will also take several intellectual properties relating to the chip manufacturer's smartphone modems, as well as equipment and leases.
The news is a confirmation of the rumors circulated just yesterday and shows an interesting development within the relationship between the two companies, although it hardly surprises us. Once Intel announced its exit from the 5G smartphone modem industry and that it would auction off many of its patents, it was almost inevitable that a company like Apple would bite quicker than Homer Simpson would on a donut.
Apple and Qualcomm make peace as Intel abandons 5G
Of course, don't expect the arrival of homemade modems for at least a year (or maybe two). In the meantime, Apple has a six-year agreement with Qualcomm, so don't get carried away just yet: the next iPhone will still have the hardware of the San Diego chip giant. In the future, however, most iPhone hardware could be made from proprietary technology and know-how. After all, Apple already produces its own processors, which are among the most powerful on the market, among other components.
Are you satisfied with Apple's new acquisition? Is this the right way to go?