Intel accuses Qualcomm: incorrect tactics pushed us out of the modem market

In the complicated affair concerning the iPhone 5G modem, Intel is the one that had the worst fate, among the three main companies involved (the other two are naturally Qualcomm and Apple). And in a recent official statement released in court he blamed it right on Qualcomm.

Before examining the latest developments, a brief summary / review of the history so far:

After arguing with Qualcomm for money reasons, Apple decided to turn to Intel; however, she did not feel well, and made peace with Qualcomm. Intel has therefore been forced to withdraw from the sector, and Apple has taken over the entire division from Intel.

Intel's new statements come within the scope of the Antitrust trial against Qualcomm underway in the United States. The hypothesis is unfair competition, and apparently Intel very passionately agrees. The legal manager of Intel also wrote a post on Marketscreener in which he explains his point of view so impossible to misrepresent:

Intel has been struggling for about a decade to develop a profitable modem division. We have invested billions, hired thousands of people, bought two companies and created innovative and first-rate products that have come to the Apple iPhone industry leaders, including the latest iPhone 11. But ultimately, Intel has not been able to overcome the artificial and insurmountable barriers to free competition created by Qualcomm and was forced to leave the sector this year.

Intel, in particular, criticizes what it calls "the central component of tactics" of Qualcomm, or the policy no license, no chips. Very simply said: if manufacturers want Qualcomm chips they cannot simply buy them, they must sign a multi-year licensing agreement for related patents. "These unilateral and burdensome conditions allow Qualcomm to artificially reduce the price of its modems, at the same time increasing the expenses of customers who decide to turn to competing companies, such as Intel, by applying licenses that cost almost like the modems themselves".

The first trial (also chaired by the Honorable Lucy Koh, a judge whose name is often mentioned in the case of the battles of the technological giants: it was a central figure in the very famous Apple Vs. Samsung case, for example) considered Qualcomm guilty, thanks also to the testimonies of the Intel management; Qualcomm lawyers have clearly requested an appeal process.