Apple buys Intel's cell phone modem division for $1 billion 565r2t

bruno martinez avatar
After rumors, Apple confirmed it will pay $1 billion to own Intel's cellular modem division; Decision threatens Qualcomm

A Apple confirmed, this Thursday (25), the purchase of the modems division for smartphones from Intel by $1 billion. Earlier this week, the American newspaper Wall Street Journal had revealed that talks between the two companies were advanced. Yesterday, the company confirmed the acquisition through a press release. 3p3wl

With this agreement, the Intel, in addition to intellectual property, leases and equipment. The company will also expand its wireless communication patent portfolio, ing 17.

With the negotiation, apple takes over smartphone modems
With the negotiation, Apple takes over the smartphone modems

It is important to highlight that the negotiation is valid exclusively for smartphone modems, now the responsibility of the Apple . Therefore, the Intel continues to develop modems for PCs, internet devices and autonomous vehicles.

Although confirmed, the purchase is expected to be finalized in the fourth quarter of 2019, and is pending approval by the US regulator, the FCC — Federal Communications Commission. The executives of the two companies celebrated the conclusion of the purchase, which should encourage even more the deployment of 5G technology.

“This agreement allows us to focus on technology development for the 5G network while maintaining the critical intellectual property and modem technology that our team has created. We have long respected Apple and are confident they provide the right environment for this talented team and these important assets to move forward.”

Bob Swan, CEO of Intel
Apple will "hire" 2 intel employees
Apple will “hire” 2.200 Intel employees

In the same communiqué, Johnny srouji, Senior Vice President of Technology Hardware da Apple , reinforces the partnership that already existed with the Intel and values ​​the competence of the team behind the business.

“We've worked with Intel for many years, and we know this team shares the company's ion for deg technologies that deliver the best experiences in the world for our s. Apple is thrilled to have so many great engineers ing our growing group of cellular technologies, and knows they will thrive in Apple's creative and dynamic environment.”

Johny Srouji, Senior Vice President of Hardware Technologies at Apple

End of the Apple vs Qualcomm war? 6u6f14

Apple and Qualcomm Partnership Could Be Close to End
Partnership with Qualcomm may be nearing its end

There is no doubt that the purchase of most modem businesses to Intel is an answer that hits another American giant. Apple is a dependent company, as it uses technology from Qualcomm for your devices. In view of this, the company Tim Cook pays a high price for royalties, so much so that, in 2017, the two companies began to appeal to the courts, as the company has been accusing the Qualcomm to charge abusive prices.

Tim Cook came to claim that the Qualcomm charged for unknown resources, which had no relationship with the Apple , such as camera technology and touch ID. Coincidence or not, the manufacturer of the iPhone still seeks US$ 1 billion in compensation for abusive contracts for the years 2007, 2011 and 2013.

Tim Cook, Apple CEO
Tim Cook, Apple CEO

Already Intel failed to successfully complete the modems for the iPhones, nor 5G, making the Tim Cook to remain in partnership with its rival. In order not to reach the customers, both companies decided to close a deal, which yielded US$ 4,7 billion for the Qualcomm.

With confirmation of purchase of division of Intel, new horizons will be opened for the Apple . And the war with Qualcomm could end in the next few years.

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