There are no absolute barriers to the market, and the field of mobile communications is no exception. According to foreign media reports, Apple is currently negotiating with Intel to acquire modem chip assets. Including the business's intellectual property and patents, the total value of the transaction exceeds $1 billion. This "handshake" between Apple and Intel is of great significance. It is not only a reasonable market behavior, but also a "new departure" for both companies to achieve a win-win situation.
Apple has strengthened its patents and technology reserves, and its efforts in chip engineering will take a big step forward. It may move toward vertical integration of self-developed chips to avoid being "stuck"; Intel has given up many After the difficult-to-make-profit baseband chips, we will move forward with ease, and related patents will be reactivated to increase the company's revenue and profits.
Intel’s “Outstanding Talents”
Intel currently provides LTE modem chips for Apple’s latest generation iPhone. In April this year, after Apple and Qualcomm reached a settlement over patent licensing practices, the two companies announced that Apple would repurchase Qualcomm's modem chips. Hours after Apple reached a settlement with Qualcomm, Intel announced it would no longer develop next-generation 5G modem chips.
This "departure" is actually a major and correct decision made by Intel - to withdraw from the 5G modem business and return its focus to 5G network infrastructure.
It is understood that Intel’s cellular modem journey has been bumpy; Intel sold its XSCALE mobile processor product line to Marvell in 2006 and then acquired Infineon’s cellular chipset business in 2010. Re-enter the market. Apart from Apple, Intel has been unable to continue to expand over the past three years.
Consulting agencies estimate that Intel lost about $16 billion on mobile devices between 2011 and 2018. By comparison, market leader Qualcomm's operating margins in its wireless chipset business are as high as 20%.
In this regard, Intel CEO Robert Swan said frankly, "We are very excited about the opportunities of 5G and cloud in the network, but in the smartphone modem business, it is obvious that there is no clear Opportunities for profit and positive returns. ”
A gentleman abandons his flaws to find his talents, and a strong man abandons his talents to improve his quality.
Robert Swan emphasized, "5G will remain a strategic focus for Intel, and our team has developed a series of valuable wireless products and intellectual property. We are evaluating our options to realize the value we create , including various data-centric opportunities, platforms and devices in the 5G world."
For this adjustment, consulting agencies have also doubled down on their recognition. Strategy Analytics believes that "In recent years, Intel has made its With the focus shifting to data-centric businesses, the company is unlikely to suffer much, if at all, from its modem exit. Intel could benefit from such a move, as it reduces the R&D burden and gives the company the opportunity to be more productive. Pay more attention to 5G infrastructure.”