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Intel Blames Qualcomm For Multi-Billion Loss



Entrance of The Intel Museum in Silicon Valley.

Chipmaker Intel has claimed that when it sold its smartphone modem chip business to Apple, it took “a multi-billion loss” due to Qualcomm’s illegal licensing practices. The acquisition comes after Qualcomm’s appeal of a ruling that the firm is required to change its licensing practices changed as its anticompetitive practices have harmed the competitors.

“Intel fought for nearly a decade to build a profitable modem chip business. We invested billions, hired thousands, acquired two companies…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.”

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.” The chip designer has denied the Federal Trade Commission’s anti-trust accusations and the court agreed to pause the decision after being asked by some government officials. The trade group represented by U.S. units of BMW (BMWG.DE), Ford Motor Co (F.N), General Motors Co (GM.N) and Toyota Motor Co (7203.T), among others claims that Qualcomm’s licensing practices will have adverse effects.

Back in April this year, just hours after the Apple-Qualcomm deal, Intel announced their departure from 5G smartphone modem business. However, it clarified it will remain in the 5G game for PC’s and IOT devices. The manufacturer will continue investing in its 5G network infrastructure business.

Two months later, Apple invested $1 billion to buy Intel’s smartphone modem business. In a new release, the company said that approximately 2,200 Intel employees will be joining Apple, along with intellectual property equipment and leases. The deal is expected to close by the end of this year, depending on certain regulatory approvals.

Ben is a digital entrepreneur and founder of He is a technology passionate who loves sharing his ideas on smartphones and gadgets. He looks forward to imparting the spectrum of his insight and verdicts on the ‘Technology-driven world’ of today. He plans to take OntechEdge forward with the consistent support from you readers, friends and family! Ben Kemp is also author of the book "How To Tell a Story On Social Media in 2020". Direct email address: [email protected]

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