Intel Corporation announced on 2 December on the completion of the sale of Apple of most of its business modems for smartphones. About this deal $1 billion was announced in July 2019, after Qualcomm and Apple statement on the conclusion of the conciliation agreement. As previously stated, in accordance with the agreement, Intel 2200 employees moved into the Apple; the latter also received the intellectual property, hardware and 17,000 patents for wireless technologies, ranging from cellular standards before modems. Selling part of the business will allow Intel to focus on developing industrial technologies for 5G networks, as well as in the production of the modems for devices such as PC, Internet of things and Autonomous vehicles.
This transaction will bring to Intel not more than $500 million “clean”, but more importantly, will significantly reduce losses. In an interview with Yahoo! Finance Intel Executive Director Robert Swan (Robert Swan) explained that having only one customer in the segment of smartphones the company would be unable to earn enough on the sale of modems to stay in this business, and the dynamics of saturated mobile market are not allowed to have any illusions about the future.
Intel sold the business to produce modems for smartphones, incurring losses of several billion dollars, – said the American chip maker on Friday in court, claiming that the competitor Qualcomm has supplanted it from the market. Intel filed a complaint in the U.S. court of appeals, where Qualcomm is trying to cancel taken against her antitrust decision after the Federal trade Commission (FTC) filed a case. Intel, whose executives testified at the trial last Friday, claims that the FTC should remain in force. It is expected that the appeal proceedings will begin in January.
In its decision on 233 pages, handed down in may, U.S. district judge Lucy Koh (Lucy Koh) has written that the practice of patent licensing Qualcomm strangled competition in some sectors of the market of modem chips for smartphones. The judge ordered the company, based in San Diego, have revised their license agreement, lowering the remuneration to a reasonable level.
In my lawsuit and the accompanying blog post, published on Friday, Intel stated that they had been driven out of the market because of practices of Qualcomm. “We have invested billions of dollars and hired thousands of people, acquired two companies and created an innovative world class products that eventually hit the mainstream the Apple smartphones, including the latest released iPhone 11, wrote of the General legal adviser to Intel Steven Rogers (Steven R. Rodgers). – But when all was said and done, Intel has not been able to overcome artificial and insurmountable barriers to fair competition posed by schemes Qualcomm, and was forced to leave the market this year”.
Qualcomm continues to reject the accusations of the Federal trade Commission, and other authorities of the United States urged the appellate court to suspend the execution of the decision of the FTC against the company. In July, the Pentagon and the Department of energy has stated that Qualcomm is “reliable” supplier of 5G technologies and the company “cannot be replaced” in the short term if it will go bankrupt.
The informant Reuters previously reported that in 2021, Apple will move to its own chips in some products. In the design of modems Apple is reportedly collaborating with Taiwan Global Unichip, which is TSMC, but the work is still in its early stages. This obviously was the reason for the agreement with Qualcomm, and it’s pushed Apple to buy Intel’s business. The most valuable resource of the deal with Intel for Apple could not be patents. To sell iPhone 5G, the company would need to enter into agreements with the basic patent holders, 5G, including Nokia, Ericsson, Huawei and Qualcomm.