Apple bought Intel's Modem Business

Apple just bought Intel's modem business what could this possibly mean for their future luckily some of you on Twitter have said that you would like me to make a video on this so I know just a big business decision is something you guys want to talk about so that's what we're talking about today let's begin I think most people have been fairly supportive of this idea whenever I see replies to it and whenever I see people reporting on it I'm glad that the majority of people out there aren't just thinking oh Intel's modems were not as good as Qualcomm's therefore this is going to be bad because all of those teams that made not-so-great modems will now be under Apple making bad modems forever luckily a lot of you have seemed to be smarter than that and understand that win those teams win these twenty two hundred people twenty two hundred jobs are being switched over which is a lot by the way plus a billion dollars to buy it off of Intel in the first place once they're under the control of Apple they're going to be managed differently they're going to have different deadlines and probably be worked internally a lot differently than what Intel had in store and because we've seen how Apple has made their own custom chips in the past with CPUs most people are assuming that with Apple designing their own modems this means in the long run they're going to end up being very very good if anything comparable to the Qualcomm chips because right now co-come essentially has a monopoly on that kind of stuff and they're exceedingly ahead of the competition but you don't want one company that's exceedingly ahead of everybody else like in any situation you want multiple companies that are very very good at developing the individual chips or the SSDs or the displays competition is good because it means that they can compete against each other try to make the better product try to make them more affordable and ultimately the consumer wins in the end as long as there is some genuine competition but that being said we're not going to see that real Qualcomm and Apple internal chip competition for probably a little while Apple has still dropped all the legal cases they were fighting with Qualcomm and I'm sure a lot of that bitterness is still there and that's likely why Apple decided to buyout Intel's modem business because they know in the end they don't want to rely on Qualcomm forever they may be the short-term solution to make sure that we get a couple of iPhones in 2020 with 5g supports on a side note I still think that's unnecessary it's gonna take forever for 5g to be implemented everywhere even if a year ago by I still don't think it's gonna be covered in most areas and you shouldn't not buy a phone in 2020 just because it doesn't have 5g support but that's a whole different topic the point is apples playing the long game and they know that there's gonna be cellular modems that they need to implement into other devices aside from just the iPhone so while Qualcomm for the next couple years may be designing the chips for future generation iPhones they're more than likely going to be working on their own in-house design cellular chips for things like the iPad pro or things like the Apple watch because that's something that does not need 5g support it's just transmitting data this doesn't need those gigabit speeds arguably nothing needs those gigabit speeds but again different topics Ari and to have them experiment on a few cellular devices that don't necessarily need to have that insane speed right away and it's not quite the bread and butter that the iPhone is so they're definitely going to have a few years to kind of perfect and figure out how to make reliable modems and given how they manage their CPU team I think they're gonna do a pretty good job and hopefully take the cream of the crop the best and most talented people of the 22-hundred that they're acquiring from Intel in putting their talents and skills to good use most things Apple designs internally and I think that is their grand vision their end goal is that they design everything for the iPhone custom it's all designed internally they don't have to worry about different manufacturers or different companies assembling or producing their products that's a long ways away because obviously they need to use Samsung displays LG displays oftentimes Samsung SSDs or lots of different companies parts to build the iPhone and make it what it is today but ultimately at the end of the day they would like to design everything internally because then they can have complete control over every aspect of the phone and buying out the Intel modem business and allowing one day for the iPhone to have its own custom cellular chips will allow them to have even more control than they have right now like in the past they were buying modem chips from both Intel and Qualcomm and because the Qualcomm chips were so much better they had to down throttle those chips to match the speed of the Intel ones because they wanted to make sure that you know all the iPhones had the same performance and you didn't just pull the luck of the draw oh hey I got the lucky Qualcomm chip version now my phone's faster than some other poor soul that happened to get the Intel version that would be a PR nightmare that would be a big mess so if you have control over all the modems going in your phone hopefully you can make something as good is what Qualcomm is producing or hopefully someday even better give Qualcomm and run for their money and let them know that hey we don't need you anymore we can design our own chips and I'm sure Qualcomm is not very happy about this announcement either which apples being very public about they showcased it in the news room meaning they want everybody to know about this but I still don't think you're likely going to see an iPhone custom modem chip inside for at least another two years there are some reports saying that you could see an Apple made won by 2021 I think that's a tad ambitious so I would say push it to maybe 2022 but in regards to perhaps next year's Apple watch or maybe next year's iPads those could be some of the first devices you see Apple branded modems on utilizing the team that they bought from Intel just a couple days ago I'm rooting for him I think this is a good idea and I don't think we're just going to get more crappy modems because it's the Intel team I think under Apple's management they're going to make the best of it they're gonna utilize their skills and talents in good ways and like I said before most of the time anything Apple does internally it usually ends up being one of the best in the world the CPU chips is the classic example they design that internally they make it themselves and if you compare their performance to the competition they're still way in the lead especially with the a 12 and a 12 X chip the snapdragons are just barely catching up to it now and it's been available for 10 months and in another two months you're gonna see the a13 chip which is going to shatter all the records again I'm sure and this goes without saying but of course their operating systems they all design internally and the RAM management and battery efficiency they use on iPhones is far better than that of the competition so I think it's safe to say when Apple designs things internally and they don't outsource it to a different company they usually can get performance up to par with everybody else in the market or sometimes exceed that and set new standards and break new records which I'm all for seeing so that we can have more stable and reliable internet connections on the go full disclosure do not expect an apple custom chip on the 2019 iPhones those are already in production they're being built right now we know everything about them you're not gonna see Qualcomm modems on this year's iPhones as well for anyone out there that was curious about that most likely the first iPhone with all Qualcomm modems is gonna be the 20/20 iPhone there are some reports suggesting that the two premium models will be 5g and then kind of our series the more budget-friendly model that will be to standard LTE that won't get 5g which personally knowing how slowly 5g coverage takes you'll probably not even utilize that 5g speeds on those new iPhones next year for a long while but some people are buying these things for the long haul I get it I just think most of the things you do on your phone don't really require 5g in the first place a majority of you are listening to music watching videos browsing Twitter all of those things can be done with a good LTE connection if you don't have very good coverage for LTE in your area then you're definitely not going to get very good 5g coverage in your area for a long long time 5g is slower to implement than 4G so all that aside I think it's good that Apple is designing more things internally and I want to hear from you guys what other things are what other parts of the iPhone do you think Apple needs to start designing internally I'm personally hoping since Apple's gonna get good at designing their own chips and making their own custom modems for things like the iPad and the Apple watch maybe they could introduce an LTE supported MacBook a lot of people have been asking that for a long time particularly marques and we know Apple watches his videos so why not make an LTE equipped MacBook Pro I think a ton of people would buy into that and you let me know your ideas by following me over on Twitter or joining our discord this is your Apple shape here I'll see you guys in the next one

39 thoughts on “Apple bought Intel's Modem Business

  • this is why they bought it, because intel modem are ugly cancer, therefore finally it could be better…..there is not worse company for modems than intel…..

  • They need to develop their own oled displays!!! Referring history, apple had the best ips lcd on the market!! I wish to see them create wonders with oled too someday!!

  • WRONG. 5G will be available all over UK by 2020. You should say the US will not have 5G in most places by 2020 to clarify to your audience

  • Can apple please pretty please make their own screens like apple makes the Samsung screens look amazing I mean if they can do that then imagine if they made a legit tv 📺 that shit would be 💣👏👏👏👏

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  • If I need a cellular connection on my MacBook, I just connect my iPhone. It works absolutely fine, and means I don’t have to pay for two data plans. Same with the iPad, though I can see the benefits for work supplied iPads for people who work on the road.

  • Apple desires to completely control everything will be there downfall be of their arrogance of wanting to be in full control over everything.

  • Perfect= taking other peoples hard work and creating their own version and marketing it as something they did

  • There will still have to pay royalties to Qualcomm because the Intel chips infringed on Qualcomm's intellectual property. Unless they get 5G first and they beat them to the punch line. Also if Qualcomm does beat them to the 5G standard they will still have to pay royalties.

  • I believe Apple's instinctive to do everything in house while admiral might lead to their downfall. No one is always successful by themselves, it is only through working together can companies and people become better

  • Fun fact: Before Qualcomm, they source modems at Infineon then Intel bought Infineon and its engineers and now, those engineers are back at Apple designing modems at the iPhone again.

  • If Apple isn't self sufficient by now, they'll never be. Lol. Apple doesn't manufacture OLED, but is gonna be the earliest adopter of a new screen technology. Bullshit. Lol

  • don't they have an agreement in place with qualcomm to use their modems for the next 6 years. meaning this is a very long long term plans.

  • more concerned with the patchy beards on the side, no hae just clean them up to give better image. i love ur vids

  • 5G: at last a techie being honest about disadvantages of 5G despite its potential. Coverage will continue to be poor and potentially will NEVER be as good as 4G coverage because of its inherent problems.

  • Can Apple succeed where Intel failed??? I think the real reason for the purchase is the patents they're getting their hands on.

  • So my question is, who will be the winner if starlink comes out, will there still 5G around.
    And talk more about cons/pros of starlink and 5G

  • 5G has been “being implemented now” for 3 years. It’ll be another 3-5 no question until they hit 25% of the country geographically.

  • When comparing Apple's ARM based CPUs with future Apple-Intel smartphone modems…

    No matter how good the smartphone modems are, the data transfer performance is a result of the network (xG base station) and the terminal (iPhone).

    So don't expect TOO much from iPhone's future cellular modems!

    I believe the performance will be similar to main competitors' solutions. A few % up or down… And it's gonna be fast enough for 99% of all customers.

    So what's the big win? Apple can control the RnD and probably also deadlines as well.

    I think it's time for Apple to include 5G modems in the MacBook family! TRUE wireless!

    I still remember the Nokia Booklet 3G. A Windows laptop in 2008 or so. Built-in 3G! That was before 4G/LTE.

    So come on Apple! Give the MacBook family 4G/5G soon! Those computers needs 4G/5G! Just imagine the superfast system updates and whatever you use your MacBook for.

    We should not need PCMCIA or USB Dongle for 5G!

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