Why did Intel sell its modem chip unit to Apple in July at a multi-billion dollar loss? According to the company’s recent filings, Qualcomm is entirely to blame: the mobile technology giant allegedly forced Intel out of the market with its patent licensing “scheme,” which prevented fair competition. Intel ultimately conceded to Qualcomm when it managed to not only win an appeal against the FTC, but a chip supply deal with Apple.
“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,” Steven R. Rodgers, Intel’s general counsel, wrote in the post.
“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.”