Apple purchases Intel modem division for 1 billion dollars

Discussion in 'Frontpage news' started by Hilbert Hagedoorn, Jul 26, 2019.

  1. Dimitrios1983

    Dimitrios1983 Master Guru

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    [QUOTE="JamesSneed, post: 5694579, member: 270008"]Likely Intel did this so it could focus more since AMD is really breathing down their necks lately and it's only going to get worse as EPYC is rolled out.


    This right here! Well said.
     
  2. tsunami231

    tsunami231 Ancient Guru

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    focus on what though? Intel really need to get the crap together though for multiple reason.
     
  3. Witcher29

    Witcher29 Maha Guru

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    Almost 900 million euro jezus christ!
     
  4. airbud7

    airbud7 Ancient Guru

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    The 9900k says otherwise.
     

  5. tsunami231

    tsunami231 Ancient Guru

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    intel slight performance over amd at this point is no longer a selling point, and all HW security flaws intel seem to keep having is definitely not selling point
     
  6. 0blivious

    0blivious Ancient Guru

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    The 9900K is a great chip for hard-core gaming, but it falls short of AMDs offerings pretty much everywhere else. Since I do everything else more often than gaming, Intel isn't even in the conversation for me if I were to upgrade right now. It isn't like AMD are that far behind in the gaming department anyways. I don't know that focusing on AMD is Intel's reason for dumping mobile modems though. Intel is a juggernaut, after all. I suspect they could do both if they cared to.
     
  7. airbud7

    airbud7 Ancient Guru

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    Agree^...Kinda?.....If money were put aside I would build a 9900k/2080ti setup....

    Keyword: "filthy rich PC gamer"
     
  8. metagamer

    metagamer Ancient Guru

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    Clearly Intel have some sort of a selling point though when they can sell stuff off for 1b.
     
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  9. airbud7

    airbud7 Ancient Guru

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    yea^......1b ain't no joke....chump change maybe?....yea right!
     
  10. Aura89

    Aura89 Ancient Guru

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    A failing business can sell off portions of a business for high dollar amounts to save money. Doesn't make them a non-failing business just because you see many 0's.

    Don't get me wrong, i'm not saying intel is a failing business, only that a company selling off an expensive operation doesn't mean they are viable or have a "selling point".

    If i for instance sell my house for 3 million dollars, it doesn't mean i'm successful, in fact it could mean i'm selling my house because i'm out of money and need money.

    Plus, we don't even know if intel even made money off of this transaction, it's entirely possible that the costs to create this business, maintain this business, even after taking away all sales they made with this business, cost intel more then 1 billion dollars. If that's the case, then this project of theirs is technically in the negative, but would make sense for them to sell, because at that point it wouldn't be making them enough money to keep it around and might aswell sell if for a lump sum and be done with it.

    Again, not saying this is the situation that happened, however, fact is:

    Generally companies don't sell parts of their company off, unless A. They aren't doing well and need the cash. Or B. That part of the business isn't doing well, and want to offload it.

    From the looks of it, it's B, since the article states Intel had been planning on selling this division for months and even ceased production for 5G modems for phones before this announcement. But this literally doesn't have a thing to do with if intel has a "selling point", it only has to do with them not wanting that part of their company anymore. We don't know if this made them money, or was sold for less then it should have been.

    But i will state this information:

    In 2018, ONE quarter of intels revenue from this business was around 300-600 million dollars, according to any information i'm able to find (this is based off some speculation, i'll link here to one of the articles, which states $852 million revenue from that portion of the business, but i believe that's far, far off:

    https://www.fool.com/investing/2018/10/26/intels-modem-business-just-got-a-131-boost-thanks.aspx)

    So if the revenue was even $300 million in one quarter, that'd be 1.2 billion in one year, yet they sold the whole thing for 1 billion. That doesn't look to me like it's a good deal, but, i'm not an expert in these things and i'm not even remotely going to try to be, as my whole point is, a "big" dollar amount doesn't magically make it a positive for intel, or the worth of the product, just because it's big. If the company was worth 10 billion and they sold for 1 billion, that's not good.
     
    Last edited: Jul 28, 2019

  11. nz3777

    nz3777 Ancient Guru

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    1 Billion ?! Thats alot of money wow! I could think how many strippers I can get for that kind of money.
     
  12. Andrew LB

    Andrew LB Maha Guru

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    This news has absolutely nothing to do with AMD yet here come all the fanboys claiming it does. This deal has been in the works since last summer when Intel's CEO began the process of dumping assets that aren't making money. Considering Apple was the modem divison's sole customer, it made sense to sell them the majority and focus on more profitable things like 5g infrastructure.
     
  13. Aura89

    Aura89 Ancient Guru

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