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Apple Acquires Intel’s Modem Business but not getting out of modem business

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CIOL Bureau
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Apple

Yesterday on 25th July 2019, Intel and Apple signed an agreement for the acquisition of the majority of Intel’s modem business. The acquisition valued at $1 billion and 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.

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Approximately 2,200 Intel employees will join Apple, along with intellectual property, equipment and leases. Combining the acquired patents for current and future wireless technology with Apple’s existing portfolio, Apple will hold over 17,000 wireless technology patents, ranging from protocols for cellular standards to modem architecture and modem operation.

The agreement is for smartphone modems, so Intel won’t be getting out of the modem business entirely. Intel still retain the authority to develop modems for non-smartphone applications, including PCs, internet of things devices and autonomous vehicles.

“This agreement enables us to focus on developing technology for the 5G network while retaining critical intellectual property and modem technology that our team has created,” said Intel CEO Bob Swan. “We have long respected Apple and we’re confident they provide the right environment for this talented team and these important assets moving forward. We’re looking forward to putting our full effort into 5G where it most closely aligns with the needs of our global customer base, including network operators, telecommunications equipment manufacturers and cloud service providers.”

“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.”

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