Home Strategy Business Intel's Officially Out of the Smartphone Modem Following $1 Billion Deal with...

Intel’s Officially Out of the Smartphone Modem Following $1 Billion Deal with Apple


Photo: Intel

After first announcinga deal back in July, Intel is nowfinally getting out of the smartphone modem businessthanks to some help from Apple.

However, while the acquisition is valued at $1 billion, the sale of Intel’s smartphone modem business to Apple isn’t necessarily the cash windfall it might seem. In a court filing last week (via Reuters), Intel claims the deal still represents a multi-billion dollar loss for the company after the company was essentially forced out of the marketthanks to anti-competitive practices employed by rival modem-maker Qualcomm.

With the deal now final, Apple will acquire around 2,200 employees from Intel, along with a range of equipment, leases, and modem-related patents and intellectual property. That said, while the deal frees Intel from having to compete with Qualcomm when it comes to selling smartphone modems, Intel is retaining its other modem businesses that are tasked with developing components for PCs, cars, and IoT devices.

But the biggest impact of the deal is that this allows Apple to bring yet another aspect of its hardware business in house, allowing Apple to be in greater control of the components and tech that’s used in its gadgets.

It will probably be, at minimum, another couple years before we start seeing Apple developed modems show up in new iPhones, as following the resolution of thebillion-dollar legal slapfight between Apple and Qualcomm earlier this year, Apple and Qualcomm also agreed to a six-year patent licensing deal (with an optional two-year extension) and a multi-year chipset supply deal.

This gives Apple some lead time to bring its newly acquired modem business in house and to work on making its tech 5G-ready (with5G iPhones expected to drop next year) before having to put its tech in retail devices.

But eventually, like Apple’s homegrown A-series chips, modems along withdisplayslook to be yet another component Apple would rather design itself than leave in the hands of third-party supp

LEAVE A REPLY

Please enter your comment!
Please enter your name here

Must Read

Google’s ‘Hold for Me’ Assistant feature appears first on new Pixel phones – Engadget

When the Pixel 5 and Pixel 4a 5G arrive, they’ll include an early preview of Google’s new feature for the Phone app, the Duplex-powered “Hold for Me.” Mentioned during the Launch Night presentation and explained in a blog post, it lets Google Assistant wait around and wait for someone to pick up when a business…

Watch ‘Weird Al’ Yankovic Moderate Presidential Debate in ‘We’re All Doomed’ Video – Rolling Stone

“Weird Al” Yankovic teamed up with the Gregory Brothers for a comedic musical take on Tuesday night’s presidential debate between Donald Trump and Joe Biden with their video for the song “We’re All Doomed.” Yankovic and the Gregory Brothers’ satirical rendering accurately summed up the general consensus following the debate: “We’re all doomed,” Yankovic yells…

Previewing LeBron, Lakers taking on the Heat | NBA Finals | Hoop Streams – ESPN

Sorry for the interruption. We have been receiving a large volume of requests from your network. To continue with your YouTube experience, please fill out the form below.

Pixel 5, Chromecast with Google TV, Nest Audio: All of today’s Google announcements – CNET

Juan Garzon/CNET Last week Amazon dropped its annual armada of new products on us -- now it's Google's turn. The company's Launch Night In stream Wednesday follows its unveiling of the Pixel 4A budget phone in August. That event confirmed the existence of its next flagship phone, the Pixel 5, and the Pixel 4A 5G. They were launched today, along…

Disney World layoffs: 6,700 non-union employees are losing their jobs – Orlando Sentinel

About 6,700 Walt Disney World non-union employees are losing their jobs because of the fallout from the coronavirus pandemic, according to an alert the Walt Disney Co. sent to the state. The notice is the first indication of how many Orlando employees are part of the massive layoffs the company announced Tuesday after the market…