First announced in July, Apples acquisition of Intel’s mobile modem business has now been completed. The deal, which is valued at US$ 1 billion represents a smart move from Apple, who now have more room to breathe in the chipmaking department.
With all the hoo-ha that came about earlier in the year with Qualcomm (which both companies eventually settled out of court), Apple can now finally source more components in-house as opposed to relying on Qualcomm.
In spite of the 1 billion dollar valuation, Intel has claimed that the company is still taking a “multi-billion dollar loss”. If anything, it just cements how good of a deal this is for Apple.
So why exactly are Intel selling in spite of such a big loss?
Funnily enough, Intel has claimed that Qualcomm’s anti-competitive patenting tactics is the reason for the sale, forcing the company to part ways with its mobile modem business. The company’s execs have actually been testifying in court as part of the FTC’s ongoing antitrust case against Qualcomm. While the whole situation may not look very good for Qualcomm, the company is still a powerhouse when it comes to chipsets, with pretty much every Android phone out there powered by a Qualcomm processor.
It is worth noting that the sale only includes Intel’s mobile modem business. Chipsets for PCs, IoT gadgets and autonomous vehicles will still be helmed by Intel themselves. Whichever way you spin it, this is a big win for Apple moving forward. Can Intel chips compete with those of Qualcomm though? Under Apple’s direction and it’s reputation for how well the company optimizes parts, there can be no doubt.