Apple
Apple's new Mac Pro sits on display in the showroom during Apple's Worldwide Developer Conference (WWDC) in San Jose, California on June 3, 2019. (Photo by Brittany Hosea-Small / AFP) (Photo credit should read BRITTANY HOSEA-SMALL/AFP/Getty Images)
PHOTO: Brittany Hosea-Small/AFP/Getty Images
Now playing
01:23
VC legend: Apple still has vision
Apple Airpods Max
Apple Airpods Max
PHOTO: Apple
Now playing
00:43
Apple unveils $549 headphones
John Hodgman making an appearance at the end of Apple
John Hodgman making an appearance at the end of Apple's online event on November 10, 2020.
PHOTO: Apple
Now playing
00:50
The PC guy from Apple's iconic commercials is back
New 13-inch MacBook Pro.
New 13-inch MacBook Pro.
PHOTO: Apple
Now playing
03:14
See Apple's new Macbooks with the M1 chip
PHOTO: Jacob Krol/CNN
Now playing
03:16
Here's what you need to know about the iPhone 12
CUPERTINO, CALIFORNIA - OCTOBER 13, 2020: Apple CEO Tim Cook talking about the value of 5G for customers during a special event at Apple Park in Cupertino, California. (Photo by Brooks Kraft/Apple Inc.)
CUPERTINO, CALIFORNIA - OCTOBER 13, 2020: Apple CEO Tim Cook talking about the value of 5G for customers during a special event at Apple Park in Cupertino, California. (Photo by Brooks Kraft/Apple Inc.)
PHOTO: Brooks Kraft/Apple Inc
Now playing
01:02
5G is coming to the iPhone
See Apple
See Apple's new mini HomePod_00000000.jpg
Now playing
00:50
See Apple's new mini HomePod
Apple Fitness+
Apple Fitness+
PHOTO: Apple
Now playing
01:40
Apple's Fitness+ wants to take on Peloton with at-home workouts
Apple Watch Series 6 and Apple Watch SE
Apple Watch Series 6 and Apple Watch SE
PHOTO: Apple
Now playing
01:13
See Apple Watch Series 6's new health capabilities
New iPad 8th generation.
New iPad 8th generation.
PHOTO: Apple
Now playing
01:36
Watch: Apple unveils latest line-up of colorful iPads
Apple
Apple's Newton device made its public debut at CES in 1992. Marketed as a computer that fits in the palm of your hand, the device never fully took off.
PHOTO: CNN
Now playing
01:54
This was Apple's first 'iPad.' It failed miserably
PHOTO: Apple
Now playing
01:28
Watch Apple's commercial where people blurt out their private info
The Apple logo is seen hanging inside the Apple store on West 66th Street on October 5, 2011 in New York City.
The Apple logo is seen hanging inside the Apple store on West 66th Street on October 5, 2011 in New York City.
PHOTO: Andrew Burton/Getty Images/File
Now playing
01:40
Apple is worth $2 trillion
App library
App library
PHOTO: Apple
Now playing
03:04
Widgets, face mask Memoji, car keys: Here's what's new on iOS 14
Now playing
01:49
Floppy disks & headphone jacks? Apple innovated them out of existence
Now playing
01:07
We did what Apple told us not to with the Apple Card
(CNN Business) —  

Apple just bought the bulk of Intel’s smartphone-modem business in a deal valued at $1 billion.

The deal includes about 2,200 Intel (INTC) employees who will now join Apple (AAPL), as well as intellectual property, equipment and leases, the two companies said in a joint release put out Thursday.

Apple will now hold over 17,000 wireless technology patents, according to the release. Intel will still be able to develop modems for non-smartphone applications, such as PCs and autonomous vehicles.

The deal still must undergo regulatory approval, but both companies said it’s expected to close in late 2019.

The acquisition will give Apple more of a role in developing key parts of its smartphones at a time when iPhone sales are faltering as devices last longer and people have stopped replacing them as frequently. The smartphone-modem chips allow phones to connect to wireless data networks.

In April, Intel said it would no longer make 5G modems for smartphones, citing “no clear path to profitability and positive returns” in the business. Going forward, it will continue to work on other products related to 5G.

Separately, Intel reported second quarter results on Thursday that beat analyst projections for both revenue and earnings. Its shares were up more than 5% in after-hours trading.