When the stock market closed in the US, Apple announced the acquisition of Intel's smartphone modem business. As part of the deal, 2,200 Intel employees will join Apple. The company also buys intellectual property and other assets from Intel as equipment and properties associated with the business. According to Apple's press release, the companies expect the transaction to be completed in the fourth quarter of 2019, subject to regulatory and other matters.
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 mobile standards protocols to fashion architecture and modem operations. Intel will retain the ability to develop modems for non-smart applications, such as PCs, internet-by-thing devices, and autonomous vehicles.
Johny Srouji, Apple Senior Vice President of Hardware Technology, commented on the deal:
"We've been working 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. "Johny Srouji, Apple's senior vice president of Hardware Technologies, said Apple is excited to have so many great engineers joining our growing mobile phone group and knowing that they will enjoy Apple's creative and dynamic environment. Our significant acquisition of innovative IP will help accelerate the development of future products and allow Apple to further the future. "
Given Apple's two-year trial of Qualcomm that resulted in a settlement earlier this year, the deal with Intel is not surprising. Ever since Apple's purchase of P.A. Semi in 2008, Apple has purchased hardware companies that have allowed it to create several of the components that are critical to the iPhone and its other products. However, the Intel agreement is one of Apple's biggest acquisitions and demonstrates how serious the company is around 5G technology and gets Qualcomm's independence.