We covered this yesterday that Apple is in talks to buy Intel’s smartphone modem business for $1 billion. Apple today confirmed this that the said deal will be closed as early as the fourth quarter of 2019.
With this acquisition, Apple’s wireless technology patent portfolio will soar to 17,000 patents. Intel’s equipment and 2,200 employees will also join Apple.
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
After this acquisition, Intel will continue to develop modems for non-smartphone tech such as PCs, IoT devices and autonomous vehicles. Not to be taken in a meaning that Apple won’t be able to develop such 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.”
Apple was in talks to acquire Intel’s smartphone modem business even before the Apple-Qualcomm settlements. Intel pushed back from this deal but ultimately came back to Apple. Apple wants to become independent in smartphone modem development and with this deal the Cupertino based tech giant’s modem development team will be doubled. Not to mention the development time Apple will save due to this deal.
You can read the full announcement here