Apple completes its acquisition of Intel's modem business

The business has been bought for $1 billion

Apple completes its acquisition of Intel's Modem business

Apple completes its acquisition of Intel's modem business

Intel's attempts to venture into the mobile market have been an unmitigated disaster. After losing to ARM on the CPU front, Intel hoped to gain access to the lucrative market with modems, but over time it became clear that the company couldn't compete with Qualcomm, despite the desire of industry giants like Apple to move away from Qualcomm products.

With Intel seeing no future in the smartphone modem business, and Apple's desire for independence from Qualcomm modems, it is easy to see a deal was struck between the two companies. Earlier this year, Apple confirmed that they had signed an agreement with Intel to acquire the company's smartphone modem business for $1 billion, a business which will come with 2,200 Intel employees and 17,000 patents.

This deal has allowed Intel to focus its 5G efforts on technology for 5G networks and on 5G modems for non-smartphone applications. This means that Intel can still create 5G models for PCs, IoT devices and self-driving vehicles. 

Today, Apple's deal with intel has been completed, allowing Apple to create its own 5G modems and to integrate these modems into Apple's future SOCs more tightly. This could help Apple create stronger products at lower production costs. 

Apple wants to own all the essential technologies that the company requires to operate. This self-sufficiency prevents them from paying accessive royalties to 3rd parties while enabling them to focus their technological developments on areas which they deem as critical. A recent example of this is Apple's move to design its own GPUs with recent iPhone SoCs, moving away from Imagination Technologies to become more self-reliant.

Apple completes its acquisition of Intel's Modem business  

From Intel's perspective, the company has left the smartphone market behind them, at least for now. The company's future 5G modems will likely focus on PCs, enabling a new era of high-end portable computing. The primary benefits of 5G are the technology's decreased latency and higher data transfer rates over 4G, which allow portable devices to access the internet at speeds that were never possible before outside of a stable broadband connection.

Intel has announced that it has partnered with MediaTek to bring 5G technology to PCs, which means that Intel is not ready to deliver 5G modems to its laptops in the near future. Intel notebooks with MediaTek 5G modems are expected to release in early 2021. 

You can join the discussion on Apple completing its acquisition of Intel's 5G smartphone modem business on the OC3D Forums

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