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Apple Declares Independence – jj
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Apple Declares Independence

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When in the course of tech events, it becomes necessary for one company to sell a business unit to another for $1 billion…

Apple is acquiring the majority of Intel’s smartphone-modem chip unit so it can eventually free itself from the tyrannical rule of buying someone else’s modem chips. 

These are the components that go into your smartphone, connect to the mobile internet, and make life worth living. 

  • The deal also means Apple will find desks for 2,200 loyalist Intel employees and have 17,000 wireless technology patents at its disposal. 

Zoom out: Intel’s smartphone operation was losing about $1 billion annually. The death blow came in April, when Apple made up with longtime foe Qualcomm and started buying modems from the chipmaker. Apple had been Intel’s only major customer for that technology, so it was time to pack up. 

Bottom line: Apple’s strategy can be traced to 2009, when Tim Cook channeled his inner Thomas Paine with some common sense wisdom: “We believe that we need to own and control the primary technologies behind the products that we make.”

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