According to foreign media reports, Apple has completed the acquisition of Intel's smartphone modem business.
After the transaction is completed, Apple will have more technology stacks and supply chains, and will also reduce its reliance on third-party suppliers when designing and manufacturing some of the most critical components of mobile devices. Intel claims that Qualcomm's anti-competitive patent strategy forced its smartphone modem business to be sold to Apple. In July this year, Apple announced that it had agreed to acquire a majority stake in Intel's smartphone modem division for $1 billion. According to the statement, 2,200 Intel employees will join Apple.
Intel announced that it has completed the sale of the majority of its smartphone modem business to Apple for $1 billion following regulatory approval.
Before officially announcing the acquisition of Apple, Intel also publicly expressed its dissatisfaction with Qualcomm last week. Intel mentioned in a court document that the sale of its modem chip business to Apple was entirely forced by Qualcomm's unfair licensing practices.
Last week, Intel admitted it had sold its smartphone modem business to Apple for billions of dollars, according to court documents seen by Reuters. Intel added that patent licensing practices by rival chipmaker Qualcomm "stifled competition" and effectively forced it out of the market.
Apple is expected to use Qualcomm modems in its first 5G iPhones next year as part of a six-year licensing agreement between the two companies. With reports that Apple plans to develop its own modems for the iPhone by 2022-23, the Intel deal will undoubtedly help Apple in those efforts.
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