Apple's Acquisition of Intel's Smartphone Modem Business Completed, Intel Admits 'Multi-Billion Dollar Loss'

Intel today announced it has completed the sale of the majority of its smartphone modem business to Apple for $1 billion following regulatory approval. The transaction was first announced in July and includes intellectual property, equipment, and approximately 2,200 Intel employees joining Apple.

Intel 5G Modem
The deal sees Apple acquire a large portfolio of wireless patents from Intel. Apple now holds over 17,000 wireless technology patents, ranging from protocols for cellular standards to modem architecture and modem operation.

Intel will retain the ability to develop modems for non-smartphone applications, such as PCs, internet-of-things devices, and autonomous vehicles.

Last week, Intel admitted that it sold its smartphone modem business to Apple at "a multi-billion dollar loss," according to court documents unearthed by Reuters. Intel added that rival chipmaker Qualcomm's patent licensing practices "strangled competition" and effectively forced it to exit the market.

Apple is expected to use Qualcomm modems for its first 5G-enabled iPhones next year, as part of a six-year licensing agreement between the companies. Farther down the road, multiple reports have claimed that Apple plans to develop its own modems for iPhones by 2022-23, and this Intel deal would certainly help those efforts.

Top Rated Comments

mannyvel Avatar
57 months ago

On the other hand, building a cutting edge modem requires making calculated calls on where the industry will move and having deep knowledge of the relevant standards, and any non-standard enhancements, that would allow interoperability with carrier equipment. Since Apple doesn't build carrier equipment, they will likely always be trailing the competition.
The wireless standards track is well-known by all the players, and there aren't really that many choices you have to make. And Apple has some experience being on the cutting edge of wireless: they were the first vendor to ship 802.11. And in any case the standards are, well, standards. No equipment vendor in their right mind wouldn't allow Apple into their interoperability labs.

The real question, though, is if it's really worth it for Apple to be in the modem business at all. That business relies on economies of scale and a lot of engineering and wireless expertise.

I'd guess the goal is to do what it did with Bluetooth and the W1, making the modem low-power. Radios are a big power draw, and I doubt Qualcomm or Intel were willing to make a power/performance tradeoff. At some point that could become yet another competitive advantage for Apple.

I mean, they could probably save a bunch of power just by optimizing the modem's software stack. Most of those modems are driven using the Hayes AT command set, which means you need some kind of serial emulator. Apple could rip out that interface layer and go direct to the modem, which would make it more efficient, which should lead to better power/performance.

If they did it for BT/WiFi they should be able to do it for LTE/5G/6G and beyond.
Score: 10 Votes (Like | Disagree)
guzhogi Avatar
57 months ago
I'm curious to see what kind of performance an Apple-made modem would have, assuming Apple makes one.
Score: 6 Votes (Like | Disagree)
Bandaman Avatar
57 months ago

I'm curious to see what kind of performance an Apple-made modem would have, assuming Apple makes one.
Hopefully it's as good as their A-series chips. Can't be any worse than Intel's offerings.
Score: 5 Votes (Like | Disagree)
jz0309 Avatar
57 months ago
No surprises there.
I also think Apple designed modems will be several years out
Score: 5 Votes (Like | Disagree)
fokmik Avatar
57 months ago
So now, starting with 2021 probably we will have macs with 5G built in
Score: 5 Votes (Like | Disagree)
Baymowe335 Avatar
57 months ago

Still want Qualcomm chips though.
Would you rather have the A13 or the Snapdragon 855?
Score: 4 Votes (Like | Disagree)

Popular Stories

iOS 18 Siri Integrated Feature

iOS 18 Will Add These New Features to Your iPhone

Friday April 12, 2024 11:11 am PDT by
iOS 18 is expected to be the "biggest" update in the iPhone's history. Below, we recap rumored features and changes for the iPhone. iOS 18 is rumored to include new generative AI features for Siri and many apps, and Apple plans to add RCS support to the Messages app for an improved texting experience between iPhones and Android devices. The update is also expected to introduce a more...
iGBA Feature

Game Boy Emulator for iPhone Now Available in App Store Following Rule Change [Removed]

Sunday April 14, 2024 8:06 am PDT by
A week after Apple updated its App Review Guidelines to permit retro game console emulators, a Game Boy emulator for the iPhone called iGBA has appeared in the App Store worldwide. The emulator is already one of the top free apps on the App Store charts. It was not entirely clear if Apple would allow emulators to work with all and any games, but iGBA is able to load any Game Boy ROMs that...
iGBA Feature

Apple Removes Game Boy Emulator iGBA From App Store Due to Spam and Copyright Violations

Sunday April 14, 2024 9:22 pm PDT by
Apple today said it removed Game Boy emulator iGBA from the App Store for violating the company's App Review Guidelines related to spam (section 4.3) and copyright (section 5.2), but it did not provide any specific details. iGBA was a copycat version of developer Riley Testut's open-source GBA4iOS app. The emulator rose to the top of the App Store charts following its release this weekend,...
iOS 18 Siri Integrated Feature

Apple's First AI Features in iOS 18 Reportedly Won't Use Cloud Servers

Sunday April 14, 2024 9:52 am PDT by
Apple's first set of new AI features planned for iOS 18 will not rely on cloud servers at all, according to Bloomberg's Mark Gurman. "As the world awaits Apple's big AI unveiling on June 10, it looks like the initial wave of features will work entirely on device," said Gurman, in the Q&A section of his Power On newsletter today. "That means there's no cloud processing component to the...
iOS NES Emulator Bimmy Feature

NES Emulator for iPhone and iPad Now Available on App Store [Removed]

Tuesday April 16, 2024 11:33 am PDT by
The first approved Nintendo Entertainment System (NES) emulator for the iPhone and iPad was made available on the App Store today following Apple's rule change. The emulator is called Bimmy, and it was developed by Tom Salvo. On the App Store, Bimmy is described as a tool for testing and playing public domain/"homebrew" games created for the NES, but the app allows you to load ROMs for any...
new best buy blue

Best Buy Opens Up Sitewide Sale With Record Low Prices on M3 MacBook Air, iPad, and Much More

Saturday April 13, 2024 7:41 am PDT by
Best Buy this weekend has a big sale on Apple MacBooks and iPads, including new all-time low prices on the M3 MacBook Air, alongside the best prices we've ever seen on MacBook Pro, iPad, and more. Some of these deals require a My Best Buy Plus or My Best Buy Total membership, which start at $49.99/year. In addition to exclusive access to select discounts, you'll get free 2-day shipping, an...
m3 mbp space black

M4 Macs Are Expected to Launch in This Order Starting Later This Year

Sunday April 14, 2024 10:40 am PDT by
Bloomberg's Mark Gurman recently reported that the first Macs with M4 series chips will be released later this year, with more models to follow next year. In his Power On newsletter today, Gurman shared a more specific roadmap for these Macs. Here is the order in which Gurman expects the Macs to launch:1. A low-end 14-inch MacBook Pro with the M4, coming around the end of 2024. 2. A 24-inch ...
top stories 13apr2024

Top Stories: M4 Mac Roadmap Leaked, New iPads in Second Week of May, and More

Saturday April 13, 2024 6:00 am PDT by
Apple's hardware roadmap was in the news this week, with things hopefully firming up for a launch of updated iPad Pro and iPad Air models next month while we look ahead to the other iPad models and a full lineup of M4-based Macs arriving starting later this year. We also heard some fresh rumors about iOS 18, due to be unveiled at WWDC in a couple of months, while we took a look at how things ...