Sci-tech

Apple's acquisition of Intel's smartphone modem business has completed

Apple's acquisition of Intel's smartphone modem business has completed”

Qualcomm has appealed the decision to the US Court of Appeals for the Ninth Circuit, but the modem-chip dependent auto and tech industries are seeking to have the order upheld.

The sale finalizes Intel's exit from the 5G phone modem market, which started in April, when it announced that it would no longer compete with other companies to supply the chips that would allow smartphones to access next-gen data networks.

This is stated in court documents contesting Qualcomm's appeal of a US Court ruling from May 2019 that found that the company's licensing practices had "strangled" competition.

Its appeal of the decision is expected to be heard in January 2020, with various companies filing papers in opposition.

The deal covers only Intel's mobile modem department.

A trade group representing major automakers and two leading automotive suppliers filed its own a brief arguing the prices of cars equippped with 5G technology will rise unless Qualcomm's practices change.

Then it announced in July that it would be selling the majority of its smartphone modem business to Apple.

Rival chipmakers also weighed in against Qualcomm on Friday with Intel Corp (INTC.O) saying it sold its smartphone modem chip business to Apple Inc (AAPL.O) at "a multi-billion dollar loss" after Qualcomm forced it out of the market with what it described as illegal licensing practices.

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

"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".

"If Qualcomm decides to repeat its past behaviour in new IoT markets, it could demand a cut of every single improvement to millions of different products that just happen to be connected to the internet-even if the improvements have nothing whatever to do with that connectivity", the automakers said.

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.



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