Apple Acquiring the Majority of Intel's Smartphone Modem Business

Discussion in 'MacRumors.com News Discussion' started by MacRumors, Jul 25, 2019.

  1. MacRumors macrumors bot

    MacRumors

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    As rumored, Apple today announced that it has signed an agreement with Intel that will see Apple purchasing the majority of Intel's smartphone modem business.

    Approximately 2,200 Intel employees will be joining Apple, and Apple will also take over Intel's related intellectual property, equipment, and leases, in a transaction that's valued at $1 billion. At $1 billion, this is Apple's second largest known acquisition after Beats.

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    Combined with Apple's existing wireless technology patents, the Intel acquisition will give Apple more than 17,000 wireless technology patents in total, ranging from "protocols for cellular standards to modem architecture and operation." Apple says that Intel will continue to develop modems for non-smartphone applications, such as PCs, internet-of-things devices, and autonomous vehicles.

    Apple's VP of Hardware Technologies Johny Srouji said that Apple is excited to gain new engineers with expertise in modem development, with the Intel team set to join Apple's cellular technologies group.
    The acquisition, says Srouji, will allow Apple to expedite its development on future products, which likely includes the Apple-designed modem chip that's in the works. To reduce its reliance on Qualcomm and other modem chip suppliers, Apple has been working on developing its own modem chip. That technology won't be ready for another few years, but the acquisition of Intel's modem chip business could allow Apple to significantly speed up its modem chip development.

    Intel CEO Bob Swan said that selling Intel's smartphone modem chip business to Apple will allow Intel to putting its 5G efforts into other areas.
    Rumors earlier this week suggested Apple was in advanced talks with Intel and that a deal could be announced in the near future. Apple and Intel have been having discussions about an Apple acquisition of its smartphone modem business since last year.

    The talks paused temporarily when Qualcomm and Apple settled their legal differences and reached a new supply agreement, but resumed not too long afterwards. Intel announced back in April that it was planning to exit the 5G smartphone business, sharing the new shortly after the new Qualcomm/Apple deal was announced.

    Apple was planning to use Intel's 5G chips in its 2020 iPhones because of its legal battle with Qualcomm, but rumors suggested Intel wasn't able to meet design deadlines, souring the relationship between the two companies. Apple mended ties with Qualcomm and will now use Qualcomm's 5G chips in its 2020 iPhones.

    Apple has established a deal with Qualcomm for chips for future devices as well, and will likely rely on Qualcomm until its own modem chips are ready to be deployed.

    Apple says that it expects the purchase of Intel's smartphone modem chip business to be completed in the fourth quarter of 2019, subject to regulatory approvals and other customary conditions.

    Article Link: Apple Acquiring the Majority of Intel's Smartphone Modem Business
     
  2. DrJohnnyN Suspended

    DrJohnnyN

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  3. JessWinter Suspended

    JessWinter

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    #3
    Too bad Intel modems suck. Hopefully Apple can turn that around.
     
  4. cmaier macrumors G5

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    #4
    Very good news if you are in the Apple ecosystem.
     
  5. Acidsplat macrumors regular

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    #6
    Ironically, they're putting Intel technology in iPhones, while rumored to be putting iPhone ARM technology in their computers.
     
  6. cocky jeremy macrumors 601

    cocky jeremy

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    #7
    It's not like they're just going to buy it and implement it as is. They have a plan.
     
  7. kidaje macrumors regular

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    #8
    Didn’t Apple just sign a long-term contract with qualcomm?
     
  8. Bswails macrumors regular

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    #9
    Scared money don’t make money..this was smart and should be a trend for a company with WEALTH on hand lol. Cut da middle man out!
     
  9. GubbyMan macrumors 6502

    GubbyMan

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    #10
    This is Apple’s second largest purchase after Beats which was $3.0B.
     
  10. justperry macrumors G4

    justperry

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    They don’t suck, what difference does it make if it’s 2% slower, also, blame bad providers for coverage, I have no problems whatsoever with my iPhone Xs.

    And then again, Intel modem business is now Apples, they will have a first class modem ready before you know it.
     
  11. ntg macrumors regular

    ntg

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  12. ipedro macrumors 601

    ipedro

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    #13
    This makes the most sense. Apple is the perfect fit for this acquisition. I can see the 5G modem being integrated into the system on a chip in a few years. This will result in superior speed and energy efficiency while keeping the price low. That kind of advantage is something even Qualcomm won't be able to rival.
     
  13. nepalisherpa macrumors 68020

    nepalisherpa

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    #14
    Not sure if this is a good move or a bad move. I hope Apple makes the modems better than Intel could.
     
  14. Bswails macrumors regular

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    #15
    What does long term mean? And I think it’s for use of Qualcomm portfolio..long term will mean long enough to get our modems to function the way we want
     
  15. Heelpir8 macrumors member

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    #16
    It's the apparent difference in how Intel modems handle lower signal strength situations that's their issue for me.
     
  16. ipedro macrumors 601

    ipedro

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    #17
    It's the check in the checkmate. Apple got Qualcomm's lawsuits off their back, paying less for the modems than they would have for a years long lawsuit and potential settlements while giving Apple 5G chips in the near future and buying themselves time to develop their own in house solution. Best possible outcome.
     
  17. justperry macrumors G4

    justperry

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    #18
    As I said before, blame your provider with weak signals/coverage, I have no issue here as many others in Europe.
     
  18. zombierunner macrumors 65816

    zombierunner

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  19. cmaier macrumors G5

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    #20
    It was a long term agreement, not necessarily a long term contract. They needed to resolve the patent license situation regardless of where they get their chips.
     
  20. cube macrumors P6

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  21. goobot macrumors 603

    goobot

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    It will probably still take quite a few years before we see the results of this purchase.
     
  22. dumastudetto macrumors 68040

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    I think Apple's smartphone business would be considerably smaller if they could only sell to people who were guaranteed to receive above average signal/coverage all the time.
     
  23. calstanford macrumors 6502

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    #24
    So they think they can manage the Infineon team that Siemens didn't want to have anymore and now intel doesn't want to have anymore better? Coolio. Good luck!
     
  24. justperry macrumors G4

    justperry

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    #25
    What for?
    Use WiFi or a (i)phone hotspot.
    Few need a build in cellular chip.
    Another cellular contract, sharing your cellular data connection from your phone is the better deal.



    Maybe we’re lucky in Europe, coverage seems to be (much) better than for instance the U.S.
     

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226 July 25, 2019