After the dispute between Apple and Qualcomm, everyone believed that the popular tech would turn to Intel for its device needs. And the rumors eventually turned out to be true, as the two companies soon began working together.
In a blog post released Thursday, the Cupertino, California-based company announced that it has acquired Intel's smartphone modem technology for $1 billion. The acquisition is set to close in the fourth quarter of 2019
Apple and Intel collaboration
The collaboration between the two companies will lead to the integration of approximately 2,200 Intel employees into Apple, while the company's intellectual property, equipment and leases will also be transferred to its ownership.
Additionally, as part of the deal, Apple will acquire approximately 17,000 wireless charging patents that include protocols for cellular standards, architecture, and modem functions.
As Apple has acquired modem technology for smartphones, Intel will continue to produce modems for devices like PCs, internet-of-things devices, and autonomous vehicles.
What does Apple gain from this acquisition?
In case you didn't know, Apple started using Intel modems in the iPhone 7, following its legal dispute with Qualcomm.
Apple has been wanting to build its own modems , and this acquisition will help it along the way. The company also wants to focus on 5G modems, which will be easier to do now that it has Intel's expertise.
Since Apple has resolved its issues with Qualcomm and has entered into a multi-year chipset deal ,the Intel acquisition is an added advantage for the company.
Apple will continue to expand in the world of smartphones, keeping both Qualcomm and Intel close to it for its iPhone hardware , and this can only be positive for the company's position in the world of technology.
