The Cupertino company will soon be able to outrightly neglect the need for the Qualcomm chips in its devices considering that it now owns the Intel’s mobile modem business
In a series of breaking news, Intel has reportedly completed the sale of the “majority” of the company’s smartphone modem business to Apple. The deal which was first announced sometimes at the beginning of the third quarter (Q3) of 2019, was initially valued at $1 billion, even though Intel made claims to have been short of multi-billion dollars as a result of the sales to the Cupertino-based phone maker.
Apple who now completely owns the Intel mobile modem business can outrightly do away with the Chip-maker’s closest competitor- Qualcomm, which it has been having a bitter relationship with lately.
The deal, however, will still allow Intel to still monitor sales of modems to PC makers, considering that Apple only owns the sole right to the Chip-maker’s mobile modem business. Also as an extension, Intel will still manage the sales of modems to other IoTs, as well as autonomous vehicles.
Intel claimed that the sales of its MM business to Apple was not a voluntary one, claiming that it was rather forced to do so as a result of Qualcomm’s anti-competitive patenting tactics. In an attempt to find justice, the company’s executives have been testifying about the claim in court lately as part of the FTC’s ongoing antitrust case against Qualcomm. Apparently, A judge has initially ruled against the company, however, Qualcomm out of dissatisfaction appealed the decision, bringing the case to the 9th U.S. Circuit Court of Appeals.
As for Apple; the phone maker will now have less to do with third-party vendors, dominating its own supply chain. For now, it is not clear whether Apple will still sell mobile modems to other brands, but if that happens eventually, then we will keep you updated on new developments.