Published: Thu, December 05, 2019
Tech | By

Apple-Intel $1 billion smartphone modem deal is now complete

Apple-Intel $1 billion smartphone modem deal is now complete

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

In the meantime, a number of Qualcomm opponents have filed amicus briefs with the 9th US Circuit Court of Appeals, urging it to confirm the earlier decision. The iPhone 11 series runs on Intel's 4G modem.

The cost of cars equipped with ultra-fast 5G wireless technology is likely to go up if microchip supplier Qualcomm Inc's patent licensing practices fail to change, a trade group representing major automakers and two leading automotive suppliers said in court filings on Friday.

Apple had used Intel modems as an alternative to those of Qualcomm, but in April agreed to switch to Qualcomm chips as part of a broader intellectual property settlement.

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".

Michael Oh, president and founder of TSP, a Cambridge, Mass. -based solution provider, said he doesn't believe Intel is that far off from how much it lost in competition with 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. "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", Steve Rodgers, executive VP and general counsel at Intel said in a post titled "Why the Decision Against Qualcomm Should Stand".

This allowed the company to "coerce customers, tilt the competitive playing field and exclude competitors" while "shielding itself from legal scrutiny and capturing billions in unlawful gains". While iPhones are likely to continue to come with Qualcomm chips for several more years, Apple's plan is to equip the device with its own modems at some point in the near future.

IT Pro contacted Qualcomm but it refused to comment on the matter.

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