Apple takes majority stake in Intel modem unit

Published July 26, 2019, 12:00 AM

by manilabulletin_admin

By Agence France-Presse

Apple agreed Thursday to pay $1 billion to acquire the majority of Intel’s smartphone modem business, a move giving the iPhone maker more control over its supply chain.

(COMBO) This combination of pictures created on July 22, 2019 shows the Apple logo is seen on the building of an Apple store in Beijing on January 4, 2019. An Intel sign is seen during the Consumer Electronics Show (CES) 2018 at the Las Vegas Convention Center in Las Vegas, Nevada on January 12, 2018. - Apple is in talks to buy Intel's smartphone modem chip unit, a move that would help the iPhone maker control a key component, the Wall Street Journal reported on July 22, 2019. (Photos by NICOLAS ASFOURI and MANDEL NGAN / AFP)
(COMBO) This combination of pictures created on July 22, 2019 shows the Apple logo is seen on the building of an Apple store in Beijing on January 4, 2019. An Intel sign is seen during the Consumer Electronics Show (CES) 2018 at the Las Vegas Convention Center in Las Vegas, Nevada on January 12, 2018. – Apple is in talks to buy Intel’s smartphone modem chip unit, a move that would help the iPhone maker control a key component, the Wall Street Journal reported on July 22, 2019. (Photos by NICOLAS ASFOURI and MANDEL NGAN / AFP)

As part of the deal, some 2,200 Intel employees will join Apple, which will acquire intellectual property, equipment and leases.

Johny Srouji, Apple’s senior vice president of hardware technologies, said the move “will help expedite our development on future products and allow Apple to further differentiate moving forward.”

Intel chief executive Bob Swan said the deal “enables us to focus on developing technology for the 5G network while retaining critical intellectual property and modem technology that our team has created.”

Apple has been investing in its own mobile chips to ramp up performance and features in its devices and reduce its dependence on sector leader Qualcomm.

Intel earlier this year announced it was abandoning efforts to compete with modem chips for smartphones synched to new-generation “5G” networks.

Apple has accused Qualcomm, which holds the most patents for chips, of taking advantage of its dominant position to charge exorbitant amounts for its chips or access to its patents. But the two firms later agreed to settle their legal disputes.

 
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