Friday, July 26, 2019

Apple to Acquire Intel’s Modem Business

Apple (Intel, MacRumors, Hacker News):

Apple and Intel have signed an agreement for Apple to acquire the majority of Intel’s smartphone modem business. Approximately 2,200 Intel employees will join Apple, along with intellectual property, equipment and leases. The transaction, valued at $1 billion, is expected to close in the fourth quarter of 2019, subject to regulatory approvals and other customary conditions, including works council and other relevant consultations in certain jurisdictions.

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.

Seems like a great deal at only 1/3 of a Beats.

John Gruber:

Remember this bit of the Cook Doctrine: “We believe that we need to own and control the primary technologies behind the products that we make.” If anything, Apple waited too long to take control of its modems the way it has its SoC’s.

Joe Rossignol:

Understandably, the acquisition may enable Apple to accelerate development of its own 5G modem, with Reuters citing a source who claims the iPhone maker wants to have an in-house chip ready for use in some of its products by 2021, compared to previously reported timeframes of between 2022 and 2025.


1 Comment RSS · Twitter

I'm still waiting for my Apple car to park at my Apple house. I think Apple should own everything related to my life. /s

In all seriousness, the Intel modem unit was a disaster, seemingly, wonder if this purchase is more or less helpful to getting Apple's fledgling modem business off the ground? I think it would be cool if there were a bunch of modem businesses so kudos to choice, not that Apple would ever sell their own chips to anyone else of course.

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