Apple Acquiring ‘Majority’ Of Smartphone Modem Business

The acquisition could allow Apple to better control its own destiny in iPhone development going forward, partners told CRN.

Apple has reached an agreement to acquire the “majority” of the smartphone modem business from Intel, in a $1 billion deal that has major implications for future iPhone development.

The two companies announced the deal Thursday, issuing identical news releases. The release said Apple will take on 2,200 Intel employees as well as intellectual property and equipment from the chip maker.

Glenn Gruber, senior digital strategist at Blue Bell, Pa.-based Anexinet, No. 218 on the CRN Solution Provider 500, told CRN that “it makes a lot of sense for Apple to acquire Intel’s smartphone modem business.”

“I believe that Apple would be very happy to get out from under Qualcomm and either work with more capable partners, or develop this technology in house,” Gruber said in an email to CRN. “The challenge for Apple is that the Intel 4G chip performance lags behind Qualcomm significantly and may be a while before a realistic transition from Qualcomm to an internally developed solution is viable.”

Read the full article at CRN.com