After more than 5 months, Apple finally took the Intel baseband business into the bag, and the next step is to officially “fight” with Qualcomm Huawei?

December 16, 2019, Apple has brought Intel’s smartphone baseband business under its umbrella, and acquired Intel’s approximately 2,200 employees and 17,000 patents. In terms of transaction volume, this is the second largest in Apple’s history. acquisition transaction.

According to foreign media reports, Apple has officially completed the acquisition of Intel’s baseband business, and the entire acquisition process took more than five months and cost a total of $1 billion.

According to Apple, Intel’s smartphone baseband business has been brought under its umbrella, and Intel has acquired about 2,200 employees and 17,000 patents. In terms of transaction volume, this is the second largest acquisition transaction in Apple’s history. (The first was Apple’s acquisition of Beats in 2014 for $3 billion).

For such an acquisition, Apple CEO Cook said it is an opportunity to accelerate future product development and an opportunity to own and control the “core technology” behind its products.

Some industry analysts said that after the acquisition of Intel’s baseband business, it will make a contribution to Apple’s self-developed 5G baseband in the future, and better fight against the Android camp’s Huawei, Samsung and other companies, the latter two have their own 5G baseband business. of.

In July 2019, Apple announced the acquisition of Intel’s smartphone baseband business, when 2,200 Intel employees will join Apple. Apple will pay Intel $1 billion for the employees, intellectual property and other equipment, although Intel can keep the non-smartphone baseband business.

For such an acquisition, Intel general counsel Steven R. Rodgers once publicly stated, “We have invested billions of dollars, hired thousands of employees, acquired two companies (Intel has acquired The baseband business of Infineon and VIA), which has created world-class innovative products, which have also been adopted by Apple’s iPhone 11 mobile phones, but in the end Intel was unable to overcome Qualcomm’s artificially created, fair competition. An insurmountable obstacle, we were forced out of the baseband market.”

At the beginning of 2017, Apple announced to sue Qualcomm, and the relationship between the two sides broke down in baseband cooperation. In order to put pressure on Qualcomm, Apple chose Intel’s 4G baseband, which successfully entered the smartphone baseband chip market until this year’s iPhone 11 on Apple. All are using Intel’s baseband business.

In 2018, while Apple was locked in a patent war with Qualcomm, Intel became Apple’s exclusive modem supplier and is supplying chips for this fall’s iPhone 11 lineup. However, when Apple ended a two-year patent war with Qualcomm in April this year, the two sides signed a contract for Apple to buy 5G smartphone chips. Under the six-year patent license agreement, Apple will use Qualcomm modems in its first 5G-enabled iPhones next year.

Intel previously said it was a “billion dollar loss” deal. Intel has spent billions of dollars developing smartphone modems over the past decade, including its $1.4 billion acquisition of Infineon’s wireless business in 2011. Infineon was the baseband chip supplier for the first three generations of iPhones, but Apple has used Qualcomm’s baseband chips since the iPhone 4S.

Intel executive vice president and general counsel Steven Rodgers said Intel bore the brunt of Qualcomm’s anticompetitive behavior, deprived of opportunities in the modern market, unable to sell to customers and forced to sell products at Qualcomm’s “artificially distorted prices.”

“Intel has struggled for nearly a decade to build a profitable modem chip business. We have invested billions of dollars, hired thousands of people, acquired two companies and built world-class innovations that ultimately make it to Apple Among those industry-leading iPhones, including the newly released iPhone 11. But when this was all done, Intel was unable to overcome Qualcomm’s artificial, insurmountable barriers to level playing and was forced out of the market this year,” Steven Rodgers said recently. stated in the blog post.

After several years of fighting, in April 2019, Apple and Qualcomm announced a settlement, and Qualcomm baseband was re-purchased by Apple (Apple needs to pay Qualcomm a $4.7 billion licensing fee.), the fastest iPhone in 2020 will be Use Qualcomm’s new generation of 5G baseband.

A previous report from a research firm showed that Qualcomm is expected to earn another $4 billion in revenue from Apple by the end of the 2022 fiscal year. For the 5G network to be popularized, Qualcomm has spent a lot of money to develop next-generation baseband products.

Intel executive vice president and general counsel Steven Rodgers said Intel bore the brunt of Qualcomm’s anticompetitive behavior, deprived of opportunities in the modern market, unable to sell to customers and forced to sell products at Qualcomm’s “artificially distorted prices.”

“Intel has struggled for nearly a decade to build a profitable modem chip business. We have invested billions of dollars, hired thousands of people, acquired two companies and built world-class innovations that ultimately make it to Apple Among those industry-leading iPhones, including the newly released iPhone 11. But when this was all done, Intel was unable to overcome Qualcomm’s artificial, insurmountable barriers to level playing and was forced out of the market this year,” Steven Rodgers said recently. stated in the blog post.

Qualcomm expects global shipments of 5G mobile phones to exceed 750 million units by 2022. On the other hand, Qualcomm has signed more than 75 5G contracts worldwide, and these contracts will bring Qualcomm $2.3 billion to $2.7 billion in revenue by the end of June 2020.

The current statement is that reports such as Guo Mingji show that the four new iPhone models released by Apple in the fall of next year will all support 5G networks (all use Qualcomm Snapdragon X55 baseband), but there will be differences in 5G network support. , that is, the models that support Sub-6G or Sub-6G+mmWave are released according to different countries. For countries and regions that do not have 5G or have a low penetration rate, Apple may use software to turn off the 5G function of Sub-6G iPhone models to reduce the cost of purchasing X55 basebands.

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Author: Yoyokuo