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Apple to Acquire Intel’s Modem Business for US$ 1 Bn

The US$ 1 billion deal is expected to close by the fourth quarter of 2019.

Smartphone giants, Apple Inc. has officially announced the acquisition of Intel’s 5G modem business on July 26, 2019. The acquisition is said to be worth US$ 1 billion, which will include thousands of wireless tech patents, 2,200 employees, and more. The deal is expected to close by the fourth quarter of 2019. Johny Srouji, who is a senior vice president at Apple for Hardware Technologies said, “We’ve worked with Intel for many years and know this team shares Apple’s passion for designing technologies that deliver the world’s best experiences for our users.” He added saying that the company is excited to have excellent engineers joining their growing cellular technologies group.

Furthermore, Intel CEO Bob Swan said that this acquisition will let his company focus on developing 5G for use outside of phones while holding onto crucial intellectual property and modem technology. “We’re looking forward to putting our full effort into 5G where it most closely aligns with the needs of our global customer base, including network operators, telecommunications equipment manufacturers and cloud service providers,” CEO Swan addressed. Although the acquisition is fascinating, both the companies have been working on this for several years.

Some speculations were about Apple building its own modems for iPad and iPhone. Currently, Apple is using Intel 4G modems, though it will be using Qualcomm’s 5G modem since it settled the dispute a few months ago. Still, it is difficult to tell when will Apple build its own 5G modem and use them in iPhones. After the settlement with Qualcomm, Apple struck a deal with it for a six-year licensing. The first 5G iPhone is expected to be released in 2020, it will be interesting to see how Apple develops modem on its own.

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