INTEL CLAIM QUALCOMM BUSINESS PRACTICES LED TO THE COMPANY LEAVING MODEM MARKET
The chipmaker giant Intel claim Qualcomm business practices were the practical reason why the company left the modem chip business. However, an appeal by Qualcomm based on a decision made in May, sees the chipmaker filed a brief in support of the FTC. It’s also figured out the decision is in the favor of FTC’s claim that Qualcomm’s licensing procedures for its IP within Code-Division Multiple Address ‘CDMA’ and LTE technologies have a potential effect on other competitors in the chip space.
Prior to this development, Apple had earlier announced its acquiring Intel’s modem business. Meanwhile, Apple and Qualcomm had earlier this year agreed to drop the ongoing lawsuits, while on the other hand, Qualcomm and Apple had sometimes filed against each other, and at that point in 2017, Apple did accuse Qualcomm of excessive bills imposed by Qualcomm based on the use of Qualcomm’s patents.
According to Intel’s recent filing and its updated blog post as a follow-up and it’s explaining the company’s filing, the Executive Vice President and General Counsel ‘Steven R. Rodgers’ made it clear that:
“Intel suffered the brunt of Qualcomm’s anticompetitive behavior was denied opportunities in the modem market, was prevented from making sales to customers and was forced to sell at prices artificially skewed by Qualcomm”. Adding that, Intel should be viewed as the list of potential “competitors forced out of modem chip market by ‘Qualcomm’”.
Meanwhile, prior to the recent development (Intel claim Qualcomm business practices), it was noted that Apple settling with Qualcomm based on its previous claim includes Apple paying Qualcomm sum amount, coupled with the establishment of a six-year licensing agreement and also not excluding is the supply agreement for Qualcomm chipsets to be deployed precisely on Apple products.
In a bid to bypass Qualcomm chipsets, an industry leader when it comes to the supply of wireless communication chips used on smartphones, Apple moved to use Intel’s modems in its iPhones following what was observed as an untimely announcement of Intel exiting the modem business. However, the acquisition of the major section of Intel’s smartphone business by Apple led to many speculations – Apple will probably seek to develop its own wireless communication chips, among others.
This is where Intel has spent billions of dollars investing, eventually sold it to Apple.
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