Apple has completed the acquisition of Intel’s modem business. The deal was announced in July 2019 and is valued at one billion US dollars. Now Apple will be able to refuse to purchase modems from other vendors, including Qualcomm. Apple will receive 17 thousand patents for wireless technology and 2200 Intel employees.
As a result of this transaction, Apple will have the opportunity to install smartphones, tablets, smart watches and other gadgets modems of its own design. This is especially important on the eve of the mass launch of fifth-generation communication networks. The company will be able to abandon Qualcomm products, reducing its business dependence on third-party suppliers.
In April 2019, Intel announced that it was leaving the modem business. This happened immediately after Apple announced the return to using Qualcomm modems in their smartphones. Intel CEO Bob Swan explained that without Apple as the main customer, it makes no sense to develop this area of activity.