Here Why buy Apple $1 billion spent Intel Modem Business

Here Why buy Apple $1 billion spent Intel Modem Business

Apple buys struggling cellular modem unit Intel, lead to key engineering talent and patents, the technology giant to rapidly develop key components allow their devices to the mobile Internet to connect. The deal is estimated at $1 billion, Intel said in a statement in its quarterly earnings report Thursday included. Intel has sought unity because CEO Bob Swan decided to throw, was the chipmaker costs too much money to support a single customer that is Apple. The business has 2,200 employees of Apple and now a participation of 17,000 wireless patents, the company. Apple has been with Intel since last year only in the iPhone modem. But it was determined in April after his rights to long-standing dispute with Qualcomm Inc. author, it is back with this company 5G cellular modem for future versions of products such as the iPhone. Qualcomm was the first such large-scale technology and was on track to deliver its second-generation chip on the market have before Intel released its first. Finally, Apple wants to throw all third-party partners and modem production brought in-house, a step that the agreement should help Intel Expedite. Apple has been working on its own modem technology in recent years and has established development centers, to support the efforts of San Diego, including a playground for the development of modem and Qualcomm courtyard. In recent months, Apple has the setting Intel and Qualcomm has been ramping up to work on 5G modem. to move earlier this year, before settling with Qualcomm, Apple engineers removed modem team led by the main hardware engineering group long date vice president Ruben Caballero, in hardware technology division from Senior Vice President Johny Srouji, as Caballero He has left the company. The agreement with Qualcomm will help Apple in part a 5G iPhone on the market next year to be able to bring the deadlines for Intel failure and poor performance marked, according to people familiar with the series of events. By planning to develop its own modem, Apple does not need to rely on third-designer for such an important role. its own sales modem would follow the long-time Apple playbook, critics interior design components. Apple already designing the main processors for its mobile devices and finally provides the same for Mac computers do. The company has also built its own graphics engine, wireless chips and sophisticated individual batteries and screens. The agreement with Intel to be paid as a blow to Apple, Dialog Semiconductor Plc. $600 million for the management of power companies, providers of another key component for Apple devices.
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