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Apple completes acquisition of Intel baseband business, battles Huawei and Samsung in 5G mobile phone market

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Editor’s note: This article comes from Tencent Technology, author Silicon Valley Analytical Lion, 36 氪 released with permission.According to news on December 16, according to foreign media reports, Apple has officially completed the acquisition of Intel’s baseband business, and the entire acquisition process took more than 5 months and cost a total of 1 billion US dollars.According to Apple, Intel ’s smart phone baseband business has been included under the umbrella of Intel ’s approximately 2,200 employees and 17,000 patents. This is the second largest acquisition in Apple ’s history in terms of transaction volume.(The first was Apple’s acquisition of Beats in 2014 for $ 3 billion.)For such an acquisition, Apple CEO Cook said that this is an opportunity to speed up future product development, as well as an opportunity to own and control the “core technology” behind its products.Some industry analysts said that after the acquisition of Intel ’s baseband business, this will build Apple ’s self-developed 5G baseband in the future and better fight against the Android camp ’s Huawei, Samsung and other companies.of.In July 2019, Apple announced the acquisition of Intel’s smart phone baseband business. At that time, 2,200 Intel employees will join Apple.Apple will pay Intel $ 1 billion for these employees, intellectual property, and other devices, but Intel can still retain non-smartphone baseband business.Regarding such acquisitions, Intel ’s General Counsel Steven R. Rodgers once stated that “We have invested billions of dollars, hired thousands of employees, and acquired two companies (Intel has acquired(Infineon and VIA Vericom’s baseband business), which created a world-class innovative product, also adopted by Apple’s iPhone 11 mobile phone, but in the end Intel still could not overcome the artificial competition caused by Qualcomm,Insurmountable obstacles, we were forced to withdraw from the baseband market. “In early 2017, Apple announced that it had sued Qualcomm, and the relationship between the two parties had broken in their cooperation in baseband.The smart phone baseband chip market, until this year’s iPhone 11 Apple has been using the Intel baseband business.After several years of fighting, Apple and Qualcomm announced a settlement in April 2019, and Qualcomm’s baseband was repurchased by Apple (Apple needs to pay Qualcomm a $ 4.7 billion license fee.), The fastest iPhone in 2020 will beUse Qualcomm’s next-generation 5G baseband.A report sent by a research agency previously showed that Qualcomm is expected to receive another $ 4 billion in revenue from Apple by the end of fiscal 2022.For the 5G network to be popularized, Qualcomm spent a lot of money to develop the next generation of baseband products.Qualcomm predicts that by 2022, global shipments of 5G mobile phones will exceed 750 million.On the other hand, Qualcomm has currently signed more than 75 5G contracts worldwide. These contracts will bring Qualcomm $ 2.3 billion to $ 2.7 billion in revenue by the end of June 2020.Summarizing the current statement is that reports such as Guo Mingxuan show that the 4 new iPhone products released by Apple next autumn will all support 5G networks (all must use Qualcomm Snapdragon X55 baseband), but there will be differences in 5G network support, That is, models that support Sub-6G or Sub-6G + mmWave according to different countries.For countries and regions where 5G is not available or the penetration rate is low, Apple may use software to turn off the 5G function of the Sub-6G iPhone model to reduce the cost of purchasing the X55 baseband.