Apple has bought Intels Smartphone Modem Division recently and the news broke the tech world, mainly because the price was no less than $1 Billion. Yes, the purchase happens just three months after the dispute with Qualcomm ended, and now Apple immediately asked one of its biggest rivals on the market to marry. Intel is now one happily married Smartphone chip manufacturer as the deal also signifies the transition to the upcoming next-gen wireless technology.
The deal was announced last Tuesday, July 23, and judging by the reports, Apple immediately set Intel up with a pipeline request for the 5G ultrafast network. However, the truce Apple and Qualcomm have achieved three months ago was a signal for Intel to stop its 5G research, so now they have to kick-start the project again, and in a hurry. However, it is precisely this factor that has made an entire part of their business, the modem division in question, up for grabs, so Apple not only ended a conflict with Qualcomm but has set up its future investment with a single move.
This sale is said to be providing 2,200 employees at Intel with work and it is thus far including over 17 thousand wireless technology patents. The deal will be closed later this year, October-December 2019, as 5G next generation is the future of mobile tech, which most manufacturers will delve into in 2020.
However, do not be too concerned for Qualcomm, because, in this 5G network race, they are so far very much in the lead on the market, with multiple other deals with contracts that are set for the next 5 years. They are a pivotal supplier in the US, especially now that Huawei is blacklisted as part of the ongoing Phone Wars extravaganza. Some US cities already have 5G experimental connections, but Apple doesn’t plan on releasing any 5G networks until late 2020, September probably. They will definitely come behind Samsung and Huawei, as a result of this investment, but they will have their own supplier, a division they will completely own, so it’s overall not a bad deal for them.