Intel Corp. says it’s completed the sale of the majority of its smartphone modem business to Apple.
This transaction, valued at $1 billion, was announced on July 25. As previously disclosed, this transaction enables Intel to focus on developing technology for 5G networks while retaining the option to develop modems for non-smartphone applications, such as PCs, internet of things devices and autonomous vehicles.
Approximately 2,200 Intel employees will join Apple, along with intellectual property, equipment and leases. The transaction is valued at $1 billion.
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 protocols for cellular standards to modem architecture and modem operation. Intel will retain the ability to develop modems for non-smartphone applications, such as PCs, Internet-of-things devices and autonomous vehicles.
“Apple’s acquisition of Intel’s 5G modem business will not only allow the iPhone manufacturer to gain world-class expertise in cellular modems, which is one of the most challenging areas in R&D, but also allow it to strike better deals with other major 5G patent holders,” says Dimitris Mavrakis, research director at tech market advisory firm, ABI Research. “Apple will also potentially be able to negotiate better terms with its current 5G suppliers as well as integrate parts of the 5G modem into its existing processors.
