Apple Accelerates 5G Initiatives with Acquisition of Intel Smartphone Modem Division
Published2019.08.05 11:01| Apple to Hold 17,000 Wireless Technology Patents from Intel
| Intel Maintains Modem Development Capabilities Beyond Smartphones
Apple is making a comprehensive move into the 5G mobile communication market.
Apple and Intel jointly announced on July 25 that Apple has entered into an agreement to acquire a majority stake in Intel's smartphone modem division.
Approximately 2,200 Intel employees will join Apple along with intellectual property, equipment, and leased assets.
The transaction, valued at approximately $1 billion, is expected to close in the fourth quarter of 2019, subject to customary closing conditions, including approval from regulatory authorities and consultation with labor councils and relevant jurisdictions.
By combining the current and future wireless technology patents acquired through this transaction with Apple's existing portfolio, Apple will own more than 17,000 wireless technology patents spanning from mobile communication standard protocols to modem architecture and modem operations.
Intel will continue to maintain its modem development capabilities in areas other than smartphones, including PCs, IoT devices, and autonomous vehicles.
Intel CEO Bob Swan stated, "This agreement enables Intel to maintain important intellectual property and modem technology we have developed while focusing our efforts on technology development for 5G networks," and added, "We are confident that Apple will provide an environment in which the smartphone modem business team and its important assets can be further advanced."
He further remarked, "We look forward to focusing our full efforts on 5G in the way that most closely aligns with the needs of our global customer base, including network operators, telecommunications equipment manufacturers, and cloud service providers."
Johny Srouji, Senior Vice President of Hardware Technologies at Apple, stated, "Apple is pleased that many talented engineers will be joining Apple's mobile communications technology group," and noted, "They will contribute to driving Apple's future product development while enabling us to differentiate further going forward."
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