Apple to Acquire Majority of Intel's Smartphone Modem Business

[btarunr]

Intel and Apple have 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.

Combining the acquired patents for current and future wireless technology with Apple's existing portfolio, Apple will hold over 17,000 wireless technology patents, ranging from protocols for cellular standards to modem architecture and modem operation. Intel will retain the option to develop modems for non-smartphone applications, such as PCs, internet of things devices and autonomous vehicles.



"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," said Intel CEO Bob Swan. "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."

"We've worked with Intel for many years and know this team shares Apple's passion for designing technologies that deliver the world's best experiences for our users," said Johny Srouji, Apple's senior vice president of Hardware Technologies. "Apple is excited to have so many excellent engineers join our growing cellular technologies group, and know they'll thrive in Apple's creative and dynamic environment. They, together with our significant acquisition of innovative IP, will help expedite our development on future products and allow Apple to further differentiate moving forward."

Goldman Sachs & Co. LLC served as financial advisor to Intel and Skadden, Arps, Slate, Meagher & Flom LLP served as legal advisor.

View at TechPowerUp Main Site

 

[Bones]

In other words Intel is feeling the pinch.....
I've never known Intel to sell off stuff, they normally do the opposite every chance they get.

 

[TheLostSwede]

In other words Intel is feeling the pinch.....
I've never known Intel to sell off stuff, they normally do the opposite every chance they get.

Then you have haven't been paying attention. Intel has sold off a lot of things over the years.
XScale https://en.wikipedia.org/wiki/XScale#Sale_of_PXA_processor_line
Part of its optical networking business https://www.smh.com.au/national/intel-sells-optical-component-business-20060912-gdodew.html
McAfee (ok, only most of it, not all of it) https://www.forbes.com/sites/peterc...afees-value-grown-since-intel-sold-51-to-tpg/
AR Glasses division https://www.bloomberg.com/news/arti...lan-sale-of-majority-stake-in-ar-glasses-unit (paywall link)

I'm sure they've sold off other things too over the years.

 

[Mephis]

Then you have haven't been paying attention. Intel has sold off a lot of things over the years.
XScale https://en.wikipedia.org/wiki/XScale#Sale_of_PXA_processor_line
Part of its optical networking business https://www.smh.com.au/national/intel-sells-optical-component-business-20060912-gdodew.html
McAfee (ok, only most of it, not all of it) https://www.forbes.com/sites/peterc...afees-value-grown-since-intel-sold-51-to-tpg/
AR Glasses division https://www.bloomberg.com/news/arti...lan-sale-of-majority-stake-in-ar-glasses-unit (paywall link)

I'm sure they've sold off other things too over the years.

Shhh...
Those facts don't fit with the narrative that Intel is about to collapse and go under due to the awesomeness that is Zen 2. /s


Edited to add /s. (thought it was obvious)

 

[kapone32]

Shhh...
Those facts don't fit with the narrative that Intel is about to collapse and go under due to the awesomeness that is Zen 2.

Umm Intel is 10 times the size of AMD. Even though AMD is all roses right now don't sleep on Intel. They have made some huge moves in terms of hiring lately. They are not doing that for nothing.

 

[Bones]

Then you have haven't been paying attention. Intel has sold off a lot of things over the years.
XScale https://en.wikipedia.org/wiki/XScale#Sale_of_PXA_processor_line
Part of its optical networking business https://www.smh.com.au/national/intel-sells-optical-component-business-20060912-gdodew.html
McAfee (ok, only most of it, not all of it) https://www.forbes.com/sites/peterc...afees-value-grown-since-intel-sold-51-to-tpg/
AR Glasses division https://www.bloomberg.com/news/arti...lan-sale-of-majority-stake-in-ar-glasses-unit (paywall link)

I'm sure they've sold off other things too over the years.

As said "I've never known Intel to sell off stuff".
Never had any reason to keep up with all that concerning Intel - I guess we learn something everyday and that's not such a bad thing.

 

[remixedcat]

Well with the whole qualcomm thing..

 

[Ravenas]

Apple will give Intel another blow when they begin converting their Mac lineup to ARM exclusively or ARM hybrid with in-house architecture through and through.

 

[Mephis]

Apple will give Intel another blow when they begin converting their Mac lineup to ARM exclusively or ARM hybrid with in-house architecture through and through.

Very true, but we are still probably a couple years away from that happening. Also as far as actual number of chips bought, Apple would be one of Intel's smaller oem clients. It would be a more damaging pr hit than a financial one.

 

[Ravenas]

Very true, but we are still probably a couple years away from that happening. Also as far as actual number of chips bought, Apple would be one of Intel's smaller oem clients. It would be a more damaging pr hit than a financial one.

Intel's traditional OEMs have plateaued. Only Apple is seeing growth in traditional desktops. Intel's market right now is server chips. They are about to get hard when 3rd gen TR releases and EPYC.

 

[Mephis]

Intel's traditional OEMs have plateaued. Only Apple is seeing growth in traditional desktops. Intel's market right now is server chips. They are about to get hard when 3rd gen TR releases and EPYC.

Even with the growth by Apple, they are still a fraction of the chips that Intel sells.

And no doubt AMD will take market share from Intel, but don't forget at their peak (Opteron days) AMD had at most 25% of the server market. It will take AMD several years to reach that again, and by then there is a chance that Intel pulls another Conroe (or Merom) and retake the performance lead. AMD really needs to focus on not pulling a Bulldozer after Zen.

 

[Ravenas]

Even with the growth by Apple, they are still a fraction of the chips that Intel sells.

And no doubt AMD will take market share from Intel, but don't forget at their peak (Opteron days) AMD had at most 25% of the server market. It will take AMD several years to reach that again, and by then there is a chance that Intel pulls another Conroe (or Merom) and retake the performance lead. AMD really needs to focus on not pulling a Bulldozer after Zen.

The difference between then and now is that AMD is fabless. Just focusing on architecture, and bidding out the manufacturing. Being in the fab business seems to be Intel’s problem right now.