Intel Says Qualcomm Forced It Out Of Smartphone Modem Market

Intel says it sold its modem business cheap because Qualcomm are meanies

Last week, Intel admitted that it sold its smartphone modem business to Apple at "a multi-billion dollar loss", according to court documents unearthed by Reuters.

The brief comes as Qualcomm prepares to challenge a court decision issued in May that found in favour of a FTC decision that Qualcomm's licensing practices for its wireless modem technology broke competition rules.

"Qualcomm agreed to license its modem chips on fair, reasonable, and non-discriminatory terms when it was selected to be the industry standard".

As for Qualcomm, it has taken a load of seemingly random tech media types off to Hawaii under the pretence of work; the INQUIRER's invite must have got lost in the post, either that or Qualcomm is scared that we actually understand enough about chips to poke fun at it if it does a whoopsie.

Its appeal of the decision is expected to be heard in January 2020, with various companies filing papers in opposition.

We rather hope Jony Ive is brought back into the fold next iPhone launch to wax earnestly how the A14 Telonic modem chip is the most beautifully designed semiconductor made from the ground up.

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A trade group representing major automakers and two leading automotive suppliers filed its own a brief arguing the prices of cars equippped with 5G technology will rise unless Qualcomm's practices change.

Intel said it might repurpose the business to focus on other aspects of the 5G ecosystem, from PCs to IoT devices, instead of smartphones.

Intel said it blames Qualcomm for the performance of its mobile chip business.

Qualcomm did not respond to a request for comment by press time, but the company has previously rejected the FTC's allegations that it engaged in anti-competitive behavior.

The resulting inefficiencies create higher prices that are ultimately borne by consumers, they said. Intel is still feeling stung at being forced out of the market by Qualcomm.

However, while the acquisition is valued at $1 billion, the sale of Intel's smartphone modem business to Apple isn't necessarily the cash windfall it might seem.

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