Back in July, Apple revealed its plans to acquire the majority of Intel’s smartphone modem business valued at $1 billion USD and today, Intel has officially announced that it has completed the sale of the “majority” of its smartphone modem business to Apple.
The company says the transaction will enable it to focus on developing technology for 5G networks while retaining the option to develop modems for non-smartphone applications, such as PCs, internet of things (IoT) devices and autonomous vehicles.
Intel claims that Qualcomm’s anti-competitive patenting tactics forced the sale of its smartphone modem business to Apple.
“We invested billions, hired thousands, acquired two companies and built innovative world-class products that eventually made their way into Apple’s industry-leading iPhones, including the most recently released iPhone 11,” said Steven R. Rodgers, Intel’s general counsel.
“But when all was said and done, Intel could not overcome the artificial and insurmountable barriers to fair competition created by Qualcomm’s scheme and was forced to exit the market this year.”
By owning Intel’s modem technology, Apple will be able to source more components for its connected devices in-house rather than turning to Qualcomm, a company with which it has a bitter relationship.