If there’s something that Apple hates, it’s technological dependency on 3rd parties. For a while now, Apple has been dependent on Qualcomm for smartphone modems. Now, it’s gearing up to forge it’s own way.
Apple has gone ahead and acquired Intel’s smartphone modem business, as previously rumored. Apple will pay $1 billion for the transaction, expected to close in the fourth quarter of this year. Approximately 2,200 Intel employees working on mobile modems will join Apple, along with intellectual property, equipment, and leases.
After the deal closes, by incorporating the ones it’s getting from Intel, Apple will hold over 17,000 wireless technology patents, ranging from protocols for cellular standards to modem architecture and operation. Intel will still be able to develop modems for PCs, IoT devices, and autonomous vehicles – everything but smartphones.
Apple will thus bring a big modem development team in-house, which should help it come up with its own competing solutions to Qualcomm’s, for use in iPhones a few years down the line. This will “allow Apple to further differentiate moving forward”, according to Johny Srouji, Apple’s senior vice president of Hardware Technologies.