Why Apple has bought Intel's smartphone modem business

Why Apple has bought Intel's smartphone modem business

The river sounded, and indeed, water carried. Apple announced a few hours ago the acquisition of much of the mdems business for Intel smartphones for 1,000 million dollars.

The agreement includes a portfolio of 8,500 patents and a staff of 2,200 Intel employees. Precisely that patent catalog is one of the key elements of that acquisition, and now it remains to be seen if Apple is able to develop competitive chips in a market dominated by Qualcomm. Intel, meanwhile, lets out another mobile segment in which he never succeeded (and there are already a few).

Apple pursues such an agreement for years

In 2009 Tim Cook an was not too well known outside the Apple scene. However, he already pointed out ways when they gave him the opportunity. With Jobs still alive he held a conference with investors after the presentation of tax results and made a particularly relevant comment.


Cook said that he and the people in charge of Apple "believe that we need to be owners and control the primary technologies that are behind the products we manufacture. "

What is 5G and what differences does it have with 4G

That appointment has been confirming the Philosophy of a relentless companyAt the time of first developing its own processors (the Apple A4 was the first of a triumphant lineage), then its graphics processors (after abandoning the agreement with Imagination Technologies) and now, apparently, its own 5G modems for its future iPhone and iPad

The Cupertino firm already created an office in San Diego near Qualcomm last year, but also hired former Qualcomm and Intel employees for its own division and finally taking the final step to reach an agreement with the first to end the long legal battle that both have.

That agreement precipitated the events, since Intel lost the negotiating power it had during the litigation. He could have pressed Apple to get a better price for your modem division during that legal battle, but once the situation was resolved, it changed for Apple, which was able to push down.

So (badly) he imagined the world that was going to be the first iPhone before its presentation

The price of 1,000 million dollars is not bad, but it seems of course much better for Apple than it was a few months ago – Intent to perform this operation last year – when his dependence on Qualcomm was more pronounced. The first iPhone 5G to appear in 2020 will use the company's modems, although Samsung could also participate in those components according to Ming-Chu Kuo, a specialized analyst.

Intel loses another mobile battle

In fact, the division that Apple has bought from Intel is the same as Intel had bought Infineon in 2011 for $ 1.4 billion: The accounts do not seem to have gone out to this company, which once again loses battles in the field of mobile phone.


Meanwhile, Apple prepares that transition to its own modems. Bloomberg already pointed it out in November 2018, and this movement gives the reason for a strategic purchase that the Cupertino company will give the control over a fundamental component of your mobile devices in the future.

Macs with ARM processors, the third transition: Applesfera talks