Apple just bought Intel’s smartphone modem business to prepare for 5G

If there’s one factor we find out about Apple, it’s the corporate likes to do issues its personal approach. Case in level: the corporate right now introduced it has acquired the “majority” of Intel’s mobile modem business. The $1 billion deal includes a switch of some 2,200 Intel workers, in addition to mental property, gear, and leases. The deal is anticipated to shut within the fourth quarter of 2019.

According to Apple:

Combining the acquired patents for present and future wi-fi expertise with Apple’s current portfolio, Apple will maintain over 17,00zero wi-fi expertise patents, starting from protocols for mobile requirements to modem structure and modem operation. Intel will retain the power to develop modems for non-smartphone purposes, resembling PCs, internet-of-things units and autonomous automobiles.

In different phrases, Intel will now not be within the smartphone modem business, taking away one of many solely rivals with any likelihood to rival Qualcomm’s efforts (Apple absolutely gained’t be making modems for anybody else). Granted, Intel by no means had wherever close to the widespread use Qualcomm does – certainly one of its few clients being Apple itself –  however it makes for a much less aggressive market.

Intel’s CEO Bob Swan had this to say:

This settlement permits us to give attention to growing expertise for the 5G community whereas retaining essential mental property and modem expertise that our workforce has created…. We’re wanting ahead to placing our full effort into 5G the place it most intently aligns with the wants of our world buyer base, together with community operators, telecommunications gear producers and cloud service suppliers.

We doubtless gained’t be seeing a 5G iPhone based mostly on Intel’s expertise for a couple of years, however this transfer means Apple may have larger management over its {hardware} as soon as the transition is full. The firm nonetheless depends on Qualcomm components – and the primary 5G iPhones will doubtless use Qualcomm modems, however right now’s acquisition will make it simpler for the corporate to transition out of that reliance.

Apple already designs its personal CPUs and GPUs on its cellular units, and there are rumors the corporate is searching for to drop Intel’s desktop processors in favor of its personal inside a couple of years. That the corporate is wanting to make its personal mobile fashions too is just Apple being Apple.

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Published July 26, 2019 — 00:30 UTC