Apple Lossless Audio CODEC (ALAC), bought Intel's modem division to ensure that it will be able to launch iPhones that are compatible with 5G networks. Apple will pay $1 billion for the Intel division and associated patents, with the sale to be completed in the fourth fiscal quarter of 2019.
Apple will have 2200 new employees, plus another 17.000 patents, all the equipment owned by Intel will also be transferred. It seems that Apple will buy the "majority" of Intel's smartphone division, although it is not clear what percentage of it will remain with the current company.
Apple has been working with Intel for a very long time, so this acquisition is quite normal since the collaboration for the development of 5G modems was not successful. Those from Intel failed for several years to produce the 5G modems desired by Apple for the iPhone, so the purchase was expected for some time.
“Apple and Intel have signed an agreement for Apple to acquire most of Intel's smartphone modem business. About 2.200 Intel employees will join Apple, along with its intellectual property, equipment and leases. The transaction, valued at $1 billion, is expected to close in the fourth quarter of 2019, subject to regulatory approvals and other customary conditions, including works council and other relevant consultations in certain jurisdictions."
Apple has entered into a new partnership with Qualcomm to purchase dedicated iPhone modems, including some compatible with future 5G networks. How long it will take for Apple to be able to integrate 5G modems in the iPhone based on its own specifications is unknown, but it probably won't be long until we see this too.
