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Apple bought the 5G modem development department for $ 1 billion from Intel

It seems that most of the rumors recently circulating recently found confirmation in reality, because the Cupertino giant just officially confirmed the takeover of the smartphone 5G network modems.

Although it seemed that after the last contract with Qualcomm, which ended on the occasion of many years of court battles between corporations, Intel remained on smartphone modems from the makers of Snapdragon, but … this one has slightly different plans. Initially, i.e. for sure for the next 6 years, because the contract has been signed so far, in fact it will use iPhones from Qualcomm modems, but later it will most likely put on its own solutions.

At least this suggests buying a $ 1 billion Intel division dedicated to the development and production of modems for smartphones, which means taking over 2,200 employees, equipment and intellectual property. Apple hopes to complete the process this year, but it depends of course on whether it will get all the necessary consents, because as you know all transactions that may lead to a monopoly or weakening of competition are thoroughly checked.

It is worth noting that Intel will still be able to create modems for computers, Internet of Things devices or self-propelled cars, because it only got rid of the part concerning modems for smartphones. The company sees it as a big opportunity, because in its opinion it will be able to calmly focus on what customers expect, namely 5G, and its mobile modems were not as popular as those from Qualcomm and in total only Apple was interested in them. scale.

And here we come to a matter that may be a small obstacle for Apple, or at least in the beginning, that is, Intel modems have always been considered worse than those provided by the Snapdragon manufacturer. But perhaps the Cupertino giant, using his experience in creating smartphones, will be able to make such changes in this technology to make it sufficient for subsequent generations of iPhones. And as we mentioned, he has at least a few years to do it. In addition, Apple may already have its own ideas in this area and could only go here for equipment and human resources, time will show.