Apple addressed the elephant stating that it is undergoing an acquisition where it will buy Intel’s modem business for as much as $1 billion. This acquisition includes all the leases, equipment, IPs, and the 2,200 Intel employees that will now head over the Apple.
This isn’t surprising since it is common knowledge that Apple has been wanting to establish and manufacture its own modems after it was left with Intel only after a dispute with Qualcomm while although came to an end a few months ago. Apple settled with Qualcomm although it has to agree to use Qualcomm modems for six years with an extension probability of another 2 years. After the settlement went through, Intel suddenly shut its 5G modems plans since it was already lagging a few weeks behind schedule.
Since Intel was a no go for modems for Apple, the Cupertino-based tech giant has decided to acquire Intel for $1 billion and the transaction is estimated to complete by the end of this year. A win-win situation for Apple under the leadership of Tim Cook and his Cook Doctrine policy as Apple will get the hold of over 17,000 wireless technology patents combined ranging from modem operations tor architecture to protocols for cellular standards, etc.
Although Intel will still manufacture modems, it will not do it for smartphones as Apple now owns it. This gives Apple access to developing 5G modems that it wants to introduce in 2020 iPhones although the probability behind it is not disclosed yet.
The move also gives a fighting chance against Qualcomm which develops some of the most powerful chipsets and modems. The modem business will be headed by Apple’s SVP of Hardware Technologies Johny Srouji who was once alleged once to be roped in as the next CEO of Apple. In fact, Srouji is a popular personality among the tech circuit as he was the once who made Apple iPhones with the best-performing mobile processors and there’s no doubt about it. We could see a 5G enabled iPhone sometime in 2020 of 2021 when the tech will penetrate a wider coverage than today when it is still limited to certain parts of a handful of cities around the globe.
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