Apple officially purchases Intel's 5G modem business

David Matthews

Posts: 402   +78
Staff member

It's official. Following previous rumors, Apple and Intel have signed an agreement that has Apple taking control over Intel's 5G modem business for $1 billion. Under the terms of the deal, Apple will acquire about 2,200 Intel employees as well as additional intellectual property and equipment. The two companies expect to close on the deal by the end of the year pending regulatory approvals.

“This agreement enables us to focus on developing technology for the 5G network while retaining critical intellectual property and modem technology that our team has created,” said Intel CEO Bob Swan. “We have long respected Apple and we’re confident they provide the right environment for this talented team and these important assets moving forward. 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.”

This deal sees Apple in control of its own destiny regarding 5G wireless technology. It will allow them to eventually move completely away from Qualcomm and design their own modems. This will likely save Apple millions in licensing fees. Also, given Apple's overwhelming success with chip design and penchant for vertical integration, it makes a lot of sense and could see Apple with a distinct advantage over its Android counterparts.

Ironically, Apple still has a deal with Qualcomm to use its chips for the next six years following the abrupt settlement to drop all litigation. This is likely due to Apple needing to spin up research and development to properly design the chips they want. Qualcomm's modems consistently outperformed Intel during lab testing by PC Mag. It's going to take work to beat the market leader in cellular modems.

“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,” said Johny Srouji, Apple’s senior vice president of Hardware Technologies. “Apple is excited to have so many excellent engineers join our growing cellular technologies group, and know they’ll thrive in Apple’s creative and dynamic environment. They, together with our significant acquisition of innovative IP, will help expedite our development on future products and allow Apple to further differentiate moving forward.”

Although Apple is buying Intel's 5G modem business, Intel will still retain the right to "develop modems for non-smartphone applications, such as PCs, internet of things devices and autonomous vehicles."

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Uncle Al

Posts: 7,747   +6,376
Regardless of opinions Apple will no doubt take all the technology they have a large layoff of former Intel staff, of course you have to wonder if these folks were being truly productive, why would the division be sold in the first place? Personally, I'm still waiting for a comprehensive study of the long term effects of 5G on the users. Any kind of high band radiation can cause cell disruption and if these phones, etc. are not shielded property it will be a problem and those ear buds ...... I shutter to think even the short term damage they might cause.
Granted, I'm looking at the worst case senerio but from all available information all the makers and distributors are taking a "trust us, we know what's best" attitude and we've seen plenty of examples of what happens when that occurs!
 
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netman

Posts: 587   +213
"Apple will acquire about 2,200 Intel employees as well as additional intellectual property and equipment."

I knew Apple does not have in-house resources to develop its own (as it was in news before this purchase) or the purchased Intel's modem for that matter! They now have to rely on the 2200 new hires.