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Qualcomm’s Biz Practices Drove us Out of Chip Market, Claims Intel

Approximately 2,200 Intel employees were then said to join Apple, along with intellectual property, equipment and leases

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INTEL, US
FILE- This Jan. 1, 2018, file photo shows an Intel logo on the box containing an HP desktop computer on sale at a Costco in Pittsburgh. VOA

Months after selling its smartphone modem chip business to Apple, Intel has said chipset making giant Qualcomm’s business practices pushed it out of the modem chip market.

Intel has filed a brief supporting the Federal Trade Commission (FTC) and opposing Qualcomm’s appeal of the judgment passed in May against Qualcomm by US District Court, Northern District of California.

The court found that “Qualcomm’s licensing practices have strangled competition in the CDMA and premium LTE modem chip markets for years, and harmed rivals, OEMs and end consumers.” The court also found that Qualcomm’s conduct “unfairly tends to destroy competition itself.”

“Intel agrees with the District Court’s findings. 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. We filed the brief because we believe it is important for the Court of Appeals to hear our perspective,” Steven Rodgers, Intel’s General Counsel, wrote in a post on Friday.

Qualcomm, Chinese
The logo for Qualcomm appears on a screen at the Nasdaq MarketSite, in New York. VOA

The California headquartered firm also noted that it sold its smartphone modem chip business to Apple at an “a multi-billion dollar loss”.

“We invested billions, hired thousands, acquired two companies and built innovative world-class products that eventually made their way into Apple’s industry-leading iPhones, including the most recently released iPhone 11. But when all was said and done, Intel could not overcome the artificial and insurmountable barriers to fair competition created by Qualcomm’s scheme and was forced to exit the market this year,” Rodgers noted.

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Apple, in July, announced the acquisition of chip-maker Intel’s smartphone modem business for $1 billion.

Approximately 2,200 Intel employees were then said to join Apple, along with intellectual property, equipment, and leases. (IANS)

Next Story

5G is our Top Priority Right Now: Qualcomm

As per the report, Apple may use Qualcomm's X55 modems in all its 2020 iPhones, which support both mmWave and sub-6GHz spectrum

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Qualcomm, Chinese
The logo for Qualcomm appears on a screen at the Nasdaq MarketSite, in New York. VOA

Qualcomm President Cristiano Amon at Company’s Snapdragon Tech Summit this week has said that the main goal of Qualcomm’s renewed relationship with Apple right now is to get a 5G iPhone launched on time.

During the summit, Amon stated: “Priority number one of this relationship with Apple is how to launch their phone as fast as we can. That’s the priority,” PCMag reported recently.

“We have a multi-year agreement with Apple. It’s not one, it’s not two, it’s multi-year for our Snapdragon modem. We’re setting no expectations on front end, especially because we engaged it very late,” Amon added.

Earlier, Apple and Intel were working closely to bring a 5G iPhone. However, once the six-year deal between Qualcomm and Apple was made, Intel later moved away from the 5G mobile marketplace.

FILE – A sign advertises 5G at the Qualcomm booth at CES International in Las Vegas, Jan. 9, 2019. VOA

J.P. Morgan analyst Samik Chatterjee believes, Apple will release a 5.4-inch iPhone, two 6.1-inch iPhones and one 6.7-inch iPhone with 5G connectivity in 2020.

Chatterjee predicts the company may introduce two high-end models (one 6.1-inch and one 6.7-inch) with support for mmWave, as well as a triple-lens camera and “world facing” 3D sensing for improved augmented reality capabilities.

Also Read: Apple’s iPhone 11 Pro Found Continuously Sharing the Location Even After Being Blocked to do so

While, two low-end models (6.1-inch, 5.4-inch) will not have mmWave or World facing 3D sensing, and will have a dual-lens camera.

As per the report, Apple may use Qualcomm’s X55 modems in all its 2020 iPhones, which support both mmWave and sub-6GHz spectrum. (IANS)