Apple has stated that it has purchased the majority of Intel's smartphone modem business for a $1billion USD price tag. Through the purchase, Apple will gain 2,200 of Intel's employees and also get IP Intel equipment. The companies are expected to finalize the agreement by the end of 2019.
Apple's acquisition of Intel's smartphone modem business means that it will be able to mass-produce 5G modems for iPhones. Where previously Apple would have to source parts form another company, it will now be able to create more of its own infrastructure. Apple will now be far less reliant on other companies that produce the modems that Apple uses in its phones. Through the purchase, Apple will also be better able to tailor the modem technology to its own devices.
5G Modem Acquisitions
Apple Has Purchased Most of Intel's Smartphone Modem Business
Trend Themes
1. Increasing Vertical Integration of 5G Modem Production - Apple's acquisition of Intel's smartphone modem business means that it will be able to mass-produce 5G modems for iPhones and reduce dependency on other companies.
2. Growing Competition in 5G Modem Manufacturing - Apple's acquisition of Intel's smartphone modem business may spark more acquisition deals by competitors looking to expand their modem manufacturing capabilities.
3. Increased Modularity in Smartphone Manufacturing - Apple's purchase of Intel's IP equipment indicates a trend of companies seeking to create more of their own smartphone infrastructure.
Industry Implications
1. Smartphone Manufacturing - Apple's acquisition of Intel's smartphone modem business indicates trends of increasing vertical integration and competition in the smartphone manufacturing industry.
2. Telecommunications - The 5G modem market will likely see increased competition and innovation in hardware and software as companies like Apple, Huawei, and Samsung seek to expand their manufacturing capabilities.
3. Semiconductor Manufacturing - Apple's purchase of Intel's IP equipment suggests trends of increased modularity and vertical integration in the semiconductor manufacturing industry.