Apple Acquires Intel Modem Business for $1 Billion
Apple purchases Intel's smartphone modem business for $1 billion to eventually build its own iPhone chips. The deal gives the tech giant up to eight years to develop custom 5G modems before its Qualcomm contract expires.
Apple pays $1 billion to acquire Intel's smartphone modem business, gaining thousands of employees and valuable patents. This strategic purchase allows Apple to fast-track its development of custom iPhone modems instead of relying solely on third-party suppliers.
The deal comes after Apple settles a royalty dispute with Qualcomm and agrees to use Qualcomm 5G chips for the next six to eight years. Buying Intel's struggling modem division gives Apple a massive head start so it does not have to build the complex technology completely from scratch.
This move perfectly aligns with CEO Tim Cook's strategy of reducing Apple's dependence on outside component makers. With up to eight years to refine Intel's technology, Apple quietly positions itself to win the long-term 5G war once its current Qualcomm agreement expires.