Apple to Acquire Intel’s Smartphone Modem Business for $1 Billion

Apple announced that they will be acquiring the majority of Intel’s smartphone modem business for $1 Billion. This will include approximately 2,200 Intel employees who will join Apple, along with intellectual property, equipment, and leases. The transaction 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.