Apple's Acquisition of Intel's Smartphone Modem Business Completed, Intel Admits 'Multi-Billion Dollar Loss'
Intel today announced it has completed the sale of the majority of its smartphone modem business to Apple for $1 billion following regulatory approval. The transaction was first announced in July and includes intellectual property, equipment, and approximately 2,200 Intel employees joining Apple.
The deal sees Apple acquire a large portfolio of wireless patents from Intel. Apple now holds over 17,000 wireless technology patents, ranging from protocols for cellular standards to modem architecture and modem operation.
Intel will retain the ability to develop modems for non-smartphone applications, such as PCs, internet-of-things devices, and autonomous vehicles.
Last week, Intel admitted that it sold its smartphone modem business to Apple at "a multi-billion dollar loss," according to court documents unearthed by Reuters. Intel added that rival chipmaker Qualcomm's patent licensing practices "strangled competition" and effectively forced it to exit the market.
Apple is expected to use Qualcomm modems for its first 5G-enabled iPhones next year, as part of a six-year licensing agreement between the companies. Farther down the road, multiple reports have claimed that Apple plans to develop its own modems for iPhones by 2022-23, and this Intel deal would certainly help those efforts.
Popular Stories
Apple has held "exploratory" talks with Intel and Samsung about manufacturing the main processors for its devices in the United States, reports Bloomberg ($).
Apple is said to have had early-stage talks with Intel about using its chipmaking services, while Apple executives have reportedly visited a Samsung plant under construction in Texas that will also make advanced chips.
The talks are ...
After more than a year of discussion, Apple and Intel established a preliminary agreement that will see Intel manufacturing processors for Apple devices, reports The Wall Street Journal.
Intel would make chips based on Apple chip designs, much like TSMC. Prior rumors on Intel's Apple talks have suggested Intel could make some of the lower-end processors used in Apple devices, including the...
Apple recently announced that Tim Cook will be stepping down as CEO later this year, after 15 years of leading the company.
Effective September 1, Apple's hardware engineering chief John Ternus will become the company's next CEO, while Cook will become executive chairman of Apple's board of directors. In his new role, Apple said Cook will assist with "certain aspects" of the company,...
