Apple has been trying to reduce its dependency on Qualcomm for a long time. As a result of Apple’s acquisition of Intel, will allow it to use its patents to produce its own 5G modems to support its upcoming phones.
Apple’s Acquisition of Intel- a Bad News for Qualcomm
According to media reports, Apple will pay 1 billion dollars by the end of this year. Besides being able to make its own 5G modems, the tech giant will be capable of utilizing all the smartphone Patents Intel owns, allowing it to experiment and develop any 5G modems of its liking freely. Apple’s acquisition of Intel will also mean that the company will have access to twenty-two thousand skilled workers that previously worked for Intel.
The lengthy trial over Qualcomm’s alleged abuse of FRAND patents and Apple’s use of tech without paying for it forced Qualcomm to adjust its pricing and forced Apple to pay back royalties creating a wedge between the two companies.
But somehow both companies managed to come back to the drawing board and managed to dot a 4.5 billion dollar deal that allowed Apple to use Qualcomm’s modem IP for the next six years.
The Major Benefit To Apple
Despite Apple becoming a major shareholder of Intel, it will not be able to use or acquire rights to use any patent that is not associated with smartphones. According to experts, this deal is beneficial for both the companies as it allows them autonomy and a large degree of freedom to operate.
After this acquisition, Intel will be able to re-focus its energies on further developing the preexisting technologies it deals in. On the other hand, Apple will be allowed to develop 5G technology according to its need as it has complete control over it.