Page 24 - ARUBA TODAY

A24 TECHNOLOGY
Friday 26 July 2019

In this Oct. 3, 2018, file photo the Intel logo appears on a screen
at the Nasdaq MarketSite, in New York’s Times Square.
Associated Press
Apple buys Intel’s

smartphone modem

This undated product image provided by OpenTable shows the new delivery option for diners on division for $1 billion
OpenTable’s app. The restaurant reservation company said Wednesday, July 24, 2019, that it’s
adding food delivery to keep up with customer demand. By MICHAEL LIEDTKE
Associated Press AP Technology Writer
Dining reservation app SAN FRANCISCO (AP) — Apple is paying Intel $1 billion for

OpenTable moves into delivery the chip maker’s smartphone modem division in a deal
driven by the upcoming transition to the next generation
of wireless technology.
By DEE-ANN DURBIN ed delivery times and costs with which restaurants. The agreement announced Thursday comes three
OpenTable is getting into for each service as well. OpenTable chose its three months after Apple ended a long-running dispute with
the food delivery business. Hafner said OpenTable partners because they one of Intel’s rivals, Qualcomm.
The world’s biggest online decided to add a delivery have the biggest reach, That ensured Apple would have a pipeline of chips it
restaurant reservation ser- option about nine months. Hafner said. Eventually, the needs for future iPhones to work on ultrafast wireless net-
vice — which was founded Partnering was the easiest service will expand to more works known as 5G.
21 years ago — has been and fastest way to get into of the 51,000 restaurants The Apple-Qualcomm truce prompted Intel to abandon
watching warily as more the business, Hafner said. OpenTable works with. its attempts to make chips for 5G modems, effectively
and more diners opt for de- OpenTable didn’t want OpenTable is active in 20 putting that part of its business up for grabs.
livery. Between May 2018 to operate its own fleet in countries, including Austra- Once the sale is completed later this year Apple will be
and May 2019, U.S. restau- what’s already become a lia and Japan. picking up about 2,200 Intel employees and 17,000 wire-
rant visits were flat at 23.8 booming sector. GrubHub says the partner- less technology patents. Barring any complications, the
billion, but deliveries rose According to Technomic, ship is another way for din- deal is expected to close sometime between October
3% to 2 billion, according the top five food delivery ers to discover delivery. It and December.
to NPD Group, a market re- companies in the U.S. had also gives them an option Apple’s purchase of Intel’s smartphone modem patents
search company. $13.5 billion in sales be- to try a restaurant’s food and other technology could bolster its attempt to build
So OpenTable decided to tween May 2018 and May even if a reservation isn’t its own line 5G chips and lessen its dependence on Qual-
partner with three deliv- 2019. OpenTable had to available, the company comm. The Cupertino, California, has hammered out a
ery companies — Caviar, get into delivery because said. GrubHub said it’s not licensing agreement with Qualcomm that carries through
GrubHub and Uber Eats it’s the only part of the concerned about OpenT- April 2025, with an option to extend for an additional two
— to offer that service restaurant business that’s able potentially posting its years after that.
through its app. “We want growing, said David Portal- fees alongside competi- Qualcomm is a pivotal supplier in the rollout of 5G, partic-
OpenTable to be the go-to atin, a vice president and tors. “We support any ef- ularly in the U.S. That’s because President Donald Trump’s
dining app for every meal food analyst at NPD. forts to help consumers administration has blacklisted another key 5G supplier,
occasion,” said Steve Haf- Restaurants, investors and save money on delivery,” Huawei, as part of its trade war with China.
ner, who leads OpenTable customers are subsidiz- the company said in a So far, 5G connections are only available in a few cit-
and Kayak, an airline fare ing delivery companies for statement. ies in the U.S., but they are expected to become more
search engine. Both com- now, Portalatin said. But to Dan Simons, who runs prevalent by next year. The faster networks will enable
panies are owned by trav- stand on their own, they’ll seven restaurants as the consumers with 5G devices to download movies in a
el conglomerate Booking need significant scale. co-owner and founder of matter of seconds and access other streaming services
Holdings. OpenTable — which says Maryland-based Farm- more quickly.
When OpenTable’s updat- it seats 123 million diners ers Restaurant Group, said Apple isn’t expected to release an iPhone that works on
ed site launches this week, each month — offered de- delivery was irrelevant six 5G networks until September 2020, putting it behind ri-
it will give diners a delivery livery companies access to years ago. Now, it’s the vals such as Huawei and Samsung, which already make
option for 8,000 restaurants a huge customer base. fastest growing part of his handsets that work with the faster wireless technology.
in 90 U.S. cities. If they se- “All these companies are business, accounting for “This is a clear ‘doubling down’ on 5G which remains at
lect delivery, users will be in a chase for growth and between 4-10% of his sales. the centerpiece of the company’s smartphone future,”
directed to the restaurant’s they want to be where the Simons said more than half Wedbush Securities analyst Dan Ives said of Apple’s deal
preferred service to com- consumers are,” Hafner his reservations already with Intel.
plete the transaction. If a said. Hafner said the de- come through OpenTable. The sale is a residue of Intel’s inability to catch up with
restaurant works with more livery function will make it The new system will help him Qualcomm in the business of making chips for smart-
than one delivery com- easier for diners, who may advertise his delivery op- phone modems. Intel spent the past decade trying to
pany, each option will be use multiple delivery apps tion. Simons already works make inroads in that market, with its big move coming in
shown. Eventually, OpenT- but don’t always know with Caviar and GrubHub 2011 when it bought Infineon Technologies’ smartphone
able wants to post estimat- which companies work as well as DoorDash.q modem division for $1.4 billion.q