Intel: We sold the "Modem 5G" segment to Apple at a loss of several billion

Earlier this year, Apple abandoned the adoption of Intel as a developer of "5G" modems for its future devices, which is widely believed to have prompted Intel to leave the market. In July it was revealed that Intel had signed an agreement with Apple to hand over its "Modem 5G" division for $ 1 billion.

Intel seems to think the deal was valued well below its real value, calling it a "multi-billion dollar loss", saying competitor chip maker Qualcomm created conditions that forced it out of the market.

At the time of the announcement, Intel was quite open about the reasons for exit from the market, pointing out that "it has become clear that there is no explicit path to profitability and positive returns." Now it is clear that Intel was talking about Qualcomm, now involved in a US Federal Trade Commission investigation on monopoly charges.

Qualcomm is trying to overturn the latest verdict, so Intel has filed an appeal to the Federal Trade Commission. In this filing, I explained that Qualcomm has established its own intellectual property licensing arrangements for LTE and CDMA communications in a manner that stifles potential competitors.

Specifically, Qualcomm has implemented a "no license, no chips" policy, which prevents OEMs from buying their chips unless they agree to a patent contract that makes them mandated to enter into supply agreements with rival chip manufacturers.

"Intel has suffered from Qualcomm's anti-competitive behavior, has been denied opportunities in the modem market, has been barred from selling to customers, and has been forced to sell at artificially reduced prices by Qualcomm," said Intel's General Counsel, Rod Rodgers.

Intel said it had "invested billions, employed thousands, acquired two companies and created world-class innovative products that eventually entered Apple's leading iPhones, including the recently launched iPhone 11."

But in the end that wasn't enough to make a difference, especially after Qualcomm settled all lawsuits with Apple in exchange for a privilege to become the only supplier of modems for iPhone over the next six years.

In any case, Intel will continue to sell its 4G modems on PCs, but will actually abandon the modem business in the near future. According to TechSpot, the latest deal with MediaTech to integrate its 5G modems into Intel laptops.