To bring you up to speed, Apple and Qualcomm had been in dispute for a couple of months prior, which resorted to the Cupertino-based tech company to drop the latter as its main chip supplier for smartphone modems. Originally a rumour in the tech industry, Apple has officially confirmed its plan to acquire Intel’s smartphone modem business with a transaction of USD 1 billion which is expected to close in the final quarter of 2019.
The company will be expecting approximately 2,200 Intel employees, as well as intellectual properties, equipment, leases, and over 17,000 wireless technology patents from the acquired business once the deal closes. While Intel will no longer develop smartphone modems, it will still retain its ability to produce the technology for PCs, self-driving vehicles, and IoT devices.
The acquisition will allow Apple to form an in-house modem development team for its own devices, thus competing with companies such as Qualcomm and MediaTek. With the new team and modem development, Apple should now stand a chance to compete with its smart device rivals such as Samsung and Huawei when the upcoming 5G boom arrives in 2020 and beyond.