It won't come as much surprise since the news leaked the other day, but it's still a hugely important move on Apple's part: the company confirmed Thursday afternoon that it will acquire the majority of Intel's $ 1 billion smartphone modem business. The deal will push Apple closer and closer to what appears to be the ultimate goal of taking ownership of every major component included in its iPhones. It's not just about the iPhone and other products Apple currently sells, because all of those businesses will also design chips for future Apple products like AR glasses and maybe even cars.
Apple announced in its announcement that approximately 2,200 Intel employees will transition to Apple as part of the agreement, and the Cupertino-based company will also take ownership of all relevant intellectual property, equipment and leases. The agreement is expected to end in the fourth quarter of the year, and you can check out the full press release below.
Apple wants to acquire the majority of Intel's smartphone modem business
Cupertino and Santa Clara, California ̵
Combining acquired patents for current and future wireless technology with Apple's existing portfolio, Apple will hold over 17,000 wireless patents, ranging from mobile standards protocols to fashion architecture and modem operation. Intel will retain the ability to develop modems for non-smartphone applications, such as PCs, Internet of Things, and autonomous vehicles.
"This agreement allows us to focus on developing technology for the 5G network while retaining critical intellectual property and modem technology created by our team," said Intel CEO Bob Swan. "We have long respected Apple, and we are confident that they will provide the right environment for this talented team and these key assets going forward. We look forward to putting our full effort into 5G where it more closely matches the needs of our global customer base, including network operators, telecommunications equipment manufacturers, and cloud service providers. "
" We've worked with Intel for many years and know that this team shares Apple's passion for designing technologies that deliver the best experiences in the world for our users, "said Johny Srouji, Apple's senior vice president of Hardware Technologies, Apple is pleased to have so many great engineers join our growing mobile phone group and know that they will thrive in Apple's creative and dynamic environment, along with our significant acquisition of innovative IP, will help accelerate our development of future products and allow Apple to further further the future. "