Apple has announced that it is acquiring Intel’s smartphone modem division, with around 2,200 Intel employees expected to move to Apple’s payroll.
Apple, who take immense pride in making their processors, is looking to reduce its dependency on Qualcomm for smartphone modems.
Due to disputes with Qualcomm over patents and royalties, Apple turned to Intel for modems during the manufacturing phase of the iPhone XS. However, when the duo settled its disputes, which paved way for Qualcomm’s 5G modems to be installed on iPhones, Intel’s hope of picking up a beefy modem contract from Apple took a hit.
As a result, Intel withdrew itself from the 5G modem race, giving Qualcomm an unthinkable advantage. Now, capitalizing on Intel’s situation, Apple has acquired the entire modem division, and would not be dependent on Qualcomm’s supply anymore.
According to Apple’s press release, the company is acquiring “the majority of Intel’s smartphone modem business,” including equipment and intellectual property.
The estimated $1billion takeover is likely to be completed in the 4th quarter of 2019.