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

The rumors turned out to be 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. The Cupertino team will send new employees to their own cellular technology team to work on Apple products. In addition, after a partial merger with Intel, the company’s “portfolio” will expand to 17 thousand patents, ranging from protocols to modem architecture.

At the same time, Intel is not leaving business, but is only curtailing one direction. The company will continue to produce chips for computers, the Internet of Things, and self-driving cars.

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

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

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