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Apple to buy most of Intel's smartphone modem business for $1 billion, gets thousands of patents

Intel developed the XMM 8160 modem aimed at the 5G market.

July 25, 2019

Apple Inc. said it entered an agreement to acquire the majority of Intel's smartphone modem business for $1 billion. 

The computer giant said that combining the acquired patents for existing and future wireless applications with its own technology will give it more than 17,000 patents for wireless technology. The portfolio includes protocols for cellular standards as well as modem architecture and modem operation. 

More than 2,200 Intel employees will join Apple, which will also acquire intellectual property, equipment and leases. Intel will maintain the ability to develop modems for non-smartphone applications, including personal computers, IoT devices and autonomous cars. 

"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," Bob Swan, the chief executive officer at Intel, said in a company release from Apple. "We have long respected Apple and we're confident they provide the right environment for this talented team and these important assets moving forward."

Johny Srouji, senior vice president of hardware technologies at Apple, said the company was excited to have the Intel engineers join its cellular technologies group and that they expected them to thrive in the new environment. 

"They, together with our significant acquisition of innovative IP, will help expedite our development of future products and allow Apple to further differentiate going forward," he said.

Cover photo courtesy Intel.