Published: Thu, December 05, 2019
Electronics | By Kelly Massey

Intel confirms modem chip enterprise sale to Apple

Intel confirms modem chip enterprise sale to Apple

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.

In the brief, which was filed on November 29, Intel said that Qualcomm's agreements with manufacturers effectively forced out of the smartphone modem business and that the $1 billion sale to Apple resulted in a "multi-billion dollar loss". That ruling agreed with the Federal Trade Commission, which had brought the lawsuit and accused Qualcomm of anti-competitive behavior. The company successfully received a pause in the enforcement of the FTC's ruling after receiving support from the US Department of Justice, which cited support from the Energy Department and Defense Department.

"Intel suffered the brunt of Qualcomm's anticompetitive behavior, was denied opportunities in the modem market, was prevented from making sales to customers and was forced to sell at prices artificially skewed by Qualcomm". In the file, Intel clarified that how chipset maker Qualcomm is hampering and disrupting out the potential competitors.

Last night, Intel announced that it has completed the sale of its smartphone modem business to Apple after securing regulatory approval. In an official newsroom post Steven Rodgers, executive VP and general counsel at Intel said, "Intel fought for almost a decade to build a profitable modem chip business".

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

"Clearly, Intel invested a lot of time and effort into that business", he said.

So, yes, Intel's finally managed to close the $1 billion deal with Apple to divest itself of the majority of its smartphone modem business. Apple paid Qualcomm $4.5 billion to settle that dispute.

Apple is said to disable Intel processors on their computers in the future. Both paths would continue Apple's trend of increasingly relying on its own chips for devices.

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