Apple is a company that is notorious for trying to do everything themselves. This is why they control as much of the hardware on their products as possible, and why they have even created their own software instead of relying on alternatives such as Android or Windows. It is this kind of approach which is why we weren’t surprised to learn that Apple wanted to start making its own modems for its smartphones.
However, making a modem from scratch is a massive undertaking, and that is why it was also not a surprise to learn that Apple could be looking to get some help by buying out Intel’s modem business. It turns out the rumors were true because Apple has since officially confirmed that they will be spending $1 billion to acquire (most) of Intel’s modem business.
According to Apple’s announcement, “Apple and Intel have signed an agreement for Apple to acquire the majority of Intel’s smartphone modem business. Approximately 2,200 Intel employees will join Apple, along with intellectual property, equipment and leases.” As a result, it is expected that Apple will use this opportunity to help further their efforts in developing their own 5G modems.
Currently, thanks to a settlement with Qualcomm, Apple is expected to start sourcing 5G tech from the company for its 2020 iPhone, but ultimately we imagine that the company will want to start making their own hardware to reduce their reliance on others.