Technology

Apple buys Intel’s 5G Modem business in $1 billion deal; iPhone 5G models to come by 2021

Technology giant Apple buys Intel’s 5G model technology and manufacturing business at a whopping price of $1 billion. Apple has confirmed about this acquisition of Intel’s smartphone modem manufacturing business in a second largest deal ever. With this acquisition Apple will be in a position to manufacture 5G modems in-house. This deal is very significant for Apple as it gives capability to develop 5G modems in house and moreover in coming years there will be huge demand for 5G enabled mobile devices.

According to the reports Apple paid a sum of $1 billion to Intel to acquire Intel intellectual property and the modem manufacturing equipments.  With this deal Apple will be in a much stronger position to manufacture 5G modem in its in-house facility to empower future 5G enabled iOS devices. Apple is expected to come with its 5G enabled iPhone having own 5G modems by 2021 or sooner.

For manufacturing today’s Apple devices Apple depends on Qualcomm to supply modems. According to statement issued by Apple’s SVP of hardware technologies, Johny Srouji this acquisition will help in developing future products.  Apple’s SVP  Johny Srouji said “help expedite our development on future products and allow Apple to further differentiate moving forward.”

At present Qualcomm is dominant supplier of modems and Apple previously accused Qualcomm of overcharging.

This acquisition will make Apple self dependent and there will be no need of buying 5 modems from other companies. Also it may reduce the cost of Apple devices.

Apple will be in a good technological position to develop their own modem at its own pace. As per the reports Apple will launch iPhone having own modems by 2021 or earlier.

There are rumors that Apple will show off rumoured iPhone 11 in the hardware event in coming September. Company is expected to showcase its modem manufacturing capability in the hardware event.

According to the various reports if the plan goes as per the plan Apple will be able to launch iPhone with own modem by 2021. Apple will phase out Qualcomm technology in phases. Apple needs time to make their own modem compatible with the careers in other countries.

But there is another legal obstacle as Apple has legal agreement with Qualcomm for six-years to supply of chip. So, Apple will have to work with Qualcomm to do a legal settlement. As per the current legal terms Qualcomm will supply chip to Apple till 2025. So, it is another liability for Apple to settle their deal with Qualcomm.

According to the reports company is said to be developing AR handset and self-driving car. These projects would be benefited with the Apple 5G model deal with Intel. The acquisition deal is confirmed by Apple on Thursday where its buying Intel’s mobile modem business of whopping $1 million.

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