Intel: Qualcomm To Blame For 5G Modem Sale To Apple


Intel reportedly sold its smartphone modem business off at a multi-billion dollar loss.

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.

The enforcement of the May ruling was paused in order to hear Qualcomm's appeal.

According to a report by Reuters, these annual proceedings are expected to happen in January but "Qualcomm'sopponents are weighing in early to argue that the anti-trust decision should be allowed to stand".

Apple's iPhone 11 Pro.

Apple has completed the takeover of Intel's smartphone modem business after the official announcement regarding the deal was released in July.

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

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Meanwhile, auto manufacturers said Qualcomm refused to license its technology to chipmakers, instead carrying out "unnecessary, costly, and inefficient licensing negotiations" with the firms that build automobiles.

"Despite investing billions of dollars, dedicating thousands of engineers to develop top-tier modem chips, and acquiring two modem businesses along the way, Intel could not surmount the artificial barriers to competition that Qualcomm erected", the submission said.

Intel is not entirely out of the modem business.

The sale finalizes Intel's exit from the 5G phone modem market, which started in April, when it announced that it would no longer compete with other companies to supply the chips that would allow smartphones to access next-gen data networks.

"The resulting inefficiency is ultimately borne by consumers in the form of higher prices", the auto suppliers wrote in their complaint.

In a story published last week, Niu quoted Intel's general counsel Steven Rogers: "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".

Qualcomm declined to comment.