Apple acquiring Intel’s smartphone modem business; Intel retains option for non-smartphone apps, including autonomous vehicles; 5G
Intel and Apple signed an agreement for Apple to acquire the majority of Intel’s smartphone modem business. Approximately 2,200 Intel employees will join Apple, along with intellectual property, equipment and leases. The transaction, valued at $1 billion, is 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.
Intel will retain the option to develop modems for non-smartphone applications, such as PCs, internet of things devices and autonomous vehicles.
Combining the acquired patents for current and future wireless technology with Apple’s existing portfolio, Apple will hold more than 17,000 wireless technology patents, ranging from protocols for cellular standards to modem architecture and modem operation.
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. 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.—Intel CEO Bob Swan