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Intel’s CEO explains why he sold his modems to Apple

Without a doubt one of the most important news of this year is the purchase of Intel’s modem division by Apple for a huge amount of money. Yesterday Intel’s CEO gave an interesting interview to CNBC where explains the reasons why they have agreed to sell this modem division s when 5G technology is starting to take off. In this article we tell you all the reasons that led to this decision.

The main reason that led Intel’s CEO to sell the modem division is that he did not see the industry’s growth being driven by continuing with it. This is because the only customer they had was Apple not offering its components to any other phone company.

Intel’s CEO explains why he sold his modems to AppleIntel’s CEO explains why he sold his modems to Apple

Right now 5G is the future, being the next step of the technological giants to advance their devices. This is why there is now a great demand for 5G modems and there is a very good market ahead of us with many benefits to collect, but as we say having only one customer does not help , so staying in that business was not the best idea in the world and selling it has been without doubt the best thing they could do.

But Intel is not completely without its modems, since in the contract they have signed they reserve the right to use these modems developed now by Apple as long as they are not in mobile devices, but in PCs or cars.

Apple has seen here a very good opportunity to have more control over its main components. Tim Cook himself in the presentation of economic results said exactly this by ceasing to depend on third companies like Qualcomm to implement 5G connectivity in future iPhones which is a mandatory innovation.

Leave us in the comment box what you think of the reasons why Intel has decided to sell its modem business.