When it comes to building a dominating a market, Apple is that tech which has done it very wisely. Recently Apple announced that they have decided to acquire Intel’s smartphone business for $1 billion. In a recent press release, both companies announced this big news about coming together for building more high-quality smartphones. Apple will acquire IP and all sort of equipment from the Intel. However, it’s expected that more than 2200 employees of Intel will be shifting to Apple because of this acquisition. Apple is trying to make its core businesses secure again, and that’s why Apple has acquired Intel’s primary section.
Intel is not going to get out of the market entirely because the company will still be operating in the Internet of Things, Modems for PCs and autonomous vehicles. Intel, on the other hand, is also trying to diversify its investment and business. Intel’s CEO Bob Swan said that now they can fully concentrate on developing other 5G technologies. This acquisition shows that Apple is now going to build 5G modems by themselves and won’t be relying on Qualcomm for hardware. Apple was in a long time dispute with Chipmaker, but they have solved it now, and Intel has promised to exit from 5G phone business.
Apple’s top executives said that this new acquisition is going to help future products quickly. Developing modems by its own has lots of benefits for Apple as compared to acquiring the same thing for high prices from suppliers. Now Apple can build the in house modems at their own pace and requirements. Also, the company can add new features which will differentiate its modems from other companies. However, this acquisition will somehow give more edge to Apple because now they won’t have to rely on Qualcomm.