Intel blames Qualcomm for billions lost in mobile business

By Staff reporter | 03 Dec 2019 at 20:54hrs
Intel said it blames Qualcomm for the performance of its mobile chip business.

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.

In that decision, the court ordered that Qualcomm renegotiate license agreements that won't include provisions which allow it to terminate technical support or cut off chip supply.

In addition, Qualcomm is no longer allowed to make exclusive dealing agreements with smartphone makers.

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

Executive Vice President and General Counsel at Intel Steven Rodgers wrote in an official post that Qualcomm had forced Intel out of the smartphone chip business.

"Intel fought for nearly a decade to build a profitable modem chip business. We invested billions, hired thousands, acquired two companies," Rodgers said.

"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."
Mobile chip business sold

Despite its dominance in the computer chip market, Intel has failed to become a major player in the mobile business.

At the end of July this year, Apple announced that it would buy the majority of Intel's smartphone business for $1 billion.

With the take-over, the iPhone manufacturer acquired over 17,000 wireless technology patents, while 2,200 Intel employees joined Apple.

Intel confirmed that it had invested heavily in that business and incurred a multi-billion dollar loss in its sale.



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