Despite investing billions in its smartphone modem business over the years, Intel was forced out of the market by Qualcomm. The company sold its smartphone modem business to Apple for $1 Billion a fraction of what the company had put in the business since its inception, thus incurring “a multi-billion dollar loss.”
Intel officially gave out the majority of its smartphone modem business yesterday to Apple. Apple has been striving to become self-dependent. The company makes its in-house chipsets (A-series) and is even rumored to be working on its ARM-based processors to be less dependant on Intel’s CPUs for its computers.
Intel is, however, still in the modem making business and will still make modems for PCs, IoT gadgets, and autonomous vehicles. However, the company announced a partnership deal with Taiwanese chipmaker MediaTek to bring 5G in PCs and Laptops.
Intel blames Qualcomm as the main reason for its market exit, which managed to do so and was part of a program known as the “brazen scheme” that had a “No License No Chips” (NLNC) philosophy.
According to the amicus brief filed in court, Intel explains how Qualcomm has ensured it maintains its bullish market share through various business practices. Intel’s executives have been testifying against Qualcomm in an FTC antitrust case that is still on-going.
Although the court ruled against the company, the popular US chipmaker went ahead and appealed. The case proceedings are expected to resume in January.