Apple has formally announced that it is acquiring majority of Intel’s smartphone modem business for $1 billion. As a result of this acquisition around 2,200 of Intel employees will be joining Apple. The acquisition will also mean Apple will get hold of intellectual property, equipment and leases reads the official press release.
The acquisition will close in Q4 of 2019 following regulatory approvals. Following Apple’s acquisition of Intel’s smartphone modem business, Apple will now hold over 17,000 wireless technology patents that range from modem architecture to cellular standards to modem operation. Intel will still be able to develop models for non-smartphone purposes such as PCs, IoT devices and autonomous vehicles.
Cupertino and Santa Clara, California — Apple and Intel have signed an agreement for Apple to acquire the majority of Intel’s smartphone modem business. Approximately 2,200 Intel employees will join Apple, along with intellectual property, equipment and leases. The transaction, valued at $1 billion, is expected to close in the fourth quarter of 2019, subject to regulatory approvals and other customary conditions, including works council and other relevant consultations in certain jurisdictions.
Combining the acquired patents for current and future wireless technology with Apple’s existing portfolio, Apple will hold over 17,000 wireless technology patents, ranging from protocols for cellular standards to modem architecture and modem operation. Intel will retain the ability to develop modems for non-smartphone applications, such as PCs, internet-of-things devices and autonomous vehicles.
You can read the full press release on Apple’s website here.
With the reports suggesting Apple is working on developing in-house modems, this major acquisition will certainly help the iPhone maker towards that goal.