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Apple to Acquire Majority of Intel’s Smartphone Modem Business

Intel Newsroom:

Intel and Apple have signed an agreement for Apple to acquire the majority of Intel’s smartphone modem business. Approximately 2,200 Intel employees will join Apple, along with intellectual property, equipment and leases. The transaction, valued at $1 billion, is expected to close in the fourth quarter of 2019, subject to regulatory approvals and other customary conditions, including works council and other relevant consultations in certain jurisdictions.

No surprise here. 2,200 new employees sounds like a lot, but they’re just going to keep working on what they were already working on: cellular modems. Remember this bit of the Cook Doctrine: “We believe that we need to own and control the primary technologies behind the products that we make.” If anything, Apple waited too long to take control of its modems the way it has its SoC’s.

Update: Here’s Apple’s press release. The big tell: their executive quote is from Johny Srouji.

“We’ve worked with Intel for many years and know this team shares Apple’s passion for designing technologies that deliver the world’s best experiences for our users,” said Johny Srouji, Apple’s senior vice president of Hardware Technologies. “Apple is excited to have so many excellent engineers join our growing cellular technologies group, and know they’ll thrive in Apple’s creative and dynamic environment. They, together with our significant acquisition of innovative IP, will help expedite our development on future products and allow Apple to further differentiate moving forward.”

Thursday, 25 July 2019