Apple bought part of Intel for $ 1 billion, and now can become independent from Qualcomm

The rumors were true, and Apple bought Intel’s mobile modem development division.

What is known

The deal cost Apple $ 1 billion, for whichThe company received 2,200 Intel employees, intellectual property and equipment. New workers "Cupertino" will be sent to their own team of cellular technology to work on Apple products. In addition, after a partial merger with Intel, the company's “portfolio” will expand to 17,000 patents, ranging from protocols to the architecture of modems.

At the same time, Intel does not leave the business, but only turns one direction. The company will continue to produce chips for computers, the Internet of things, as well as self-driving cars.

“The agreement allows us to focus ondeveloping technologies for 5G networks while maintaining important intellectual property and modem technology created by our team, ”said Bob Swan, Intel CEO.

According to Apple, the deal will be closed in the fourth quarter of 2019, when regulators approve the transfer of rights.

In April 2019, Apple made up with Qualcomm,having signed a contract for the supply of modems, including those with 5G support. The new deal will allow “Cupertino” to manufacture their own modems for the iPhone, rather than buying them under license from Qualcomm. So, according to analysts at Bloomberg, Apple will be able to switch to its own modems for three years.