Apple Confirms Their Hunger For Intel’s Chips
Last week, Apple (AAPL) annaounced that it is purchasing the majority of Intel Corp’s (INTC) modem business in a deal worth $1 billion as a step forward to supply its own smartphone chips. The deal marks the second-largest deal for the technology giant after $3.2 billion purchase of Beats Electronics in 2014. As per the agreement, around 2,200 Intel employees are set to join Apple for the combined venture. Intel to continue building modems for non-smartphone applications such as PCs, industrial equipment and self-driving cars.
Previously, Apple has solely relied on its previous supplier Qualcomm Inc. for their iPhone modem chips (used for connecting devices like the iPhone to wireless data networks) until Apple got into a legal fight with Qualcomm over patent licensing practices. Since then Intel has positioned itself as the sole source of iPhone modem chips for the past year. Apple’s rivals Samsung Electronics Co Ltd. and Huawei already have the ability to build modem chips for self -use. The purchase is expected to help Apple to speed up the timeline for producing a modem and to become technology self-sufficient.
“We believe that we need to own and control the primary technologies behind the products that we make,” Tim Cook as to told investors back in 2009.
The company plans to internally develop 5G modem technology for some of its products, as per sources. Apple’s deal with Qualcomm is termed for six years and any replacement is expected to happen in phases to ensure a smooth transition for all the networks and market where Apple operates.
Dow 30 component Apple (AAPL) has revolutionized personal technology with the introduction of the Macintosh in 1984. Today Apple leads the world in innovation with iPhone, iPad, Mac, Apple Watch and Apple TV. Apple’s four software platforms — iOS, macOS, watchOS, and tvOS — provide seamless experiences across all Apple devices and empower people with breakthrough services including the App Store, Apple Music, Apple Pay and iCloud. Apple’s more than 100,000 employees are dedicated to making the best products on earth, and to “leaving the world better than they found it.
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