Apple has no foundation in communication. Acquisition is the best shortcut to take. The target of the acquisition is only after considering all aspects of the factors.
According to foreign media reports, Apple will acquire a majority stake in Intel’s smartphone modem business. The transaction is valued at $1 billion.
Foreign media said it expects Apple to complete the acquisition in the fourth quarter of 2019. 2,200 Intel employees will then join Apple. Apple will pay Intel $1 billion to acquire these employees, intellectual property and other equipment.
Intel CEO Bob Swan said in an Intel earnings conference call: “This transaction retains Intel’s access to key intellectual property developed. It also enables us to focus on higher-margin 5G network development technologies.”
For this $1 billion transaction, clearly it’s a helpless move for Apple and a relief for Intel.
In this view, after a series of patent lawsuits with Qualcomm for more than two years, and the iPhone XS mobile phone signal disaster, Apple finally decided to make its own baseband.
It is actually a way to engage in the baseband and the processor itself before. However, the difference is that Apple has no foundation in communication. The acquisition is a quick shortcut, and the acquisition target is only after considering all aspects of factors.
For Intel, the mobile business has long been a chicken rib. Additionally, the market can not be overstated. In terms of baseband, I thought that the thigh of the generation of the iPhone Xs can be turned over, and the result is a drag. After this, it is estimated that Intel has no confidence in its mobile business.
In addition, many people know that the core purpose of this transaction is patent. Apple has dug a lot of talents from Qualcomm before. The technology has accumulated, but now it is a variety of patents. By acquiring Intel’s patent, they avoid unforeseen trouble.
There are also anonymous users who predicted the deal. Samsung and Huawei are both heavyweight players in communication equipment. In this way, it has been a few years since they developed their own chips. Apple’s acquisition of Intel’s baseband is not enough. The company needs to acquire some telecommunications equipment from the heavyweight players too.