Intel sold the modems department to Apple… But why? We live in a world where all smartphone and PC manufacturers claim the future is connectivity, especially when we talk about the arrival of next generation 5G networks!
However, Intel has decided to sell its modems production and development department to Apple… Why !?
So, as you may know, last July, Apple bought Intel's modem department and all technology licenses for about $ 1 billion. What is clear, eventually removes the blue giant of microprocessors from this market.
However, it seems that this deal was horrible for Intel!
According to the company itself, many billion dollars were lost in the construction and development of this department. All thanks to Qualcomm, which has essentially created an environment where it can't compete, forcing Intel to leave the market with one hand in front and the other behind.
Interestingly, at the time of the announcement, Intel admitted that it was going to leave the market because there was no clear way to make money. However, apparently this path existed… It was blocked by Qualcomm and its anti-competitive measures.
After all, Qualcomm has created its intellectual licenses for CDMA and LTE technology so as not to allow competition in the market. If not, Qualcomm has implemented a no license, no chips policy that prevents all OEMs from purchasing components unless there is a signed agreement. Clearly, buying components from rivals is more expensive, and therefore less attractive to manufacturers. Now read:
“Intel has suffered greatly from Qualcomm's anti-competitive behavior. Seeing any and all business opportunities in the modem market to be denied. Due to artificially inflated prices by Qualcomm. ”
So Intel invested many millions of euros, hired thousands of people, and even acquired two companies in order to bet strong and ugly on the market… An effort that ended up in Apple's hands for a price of 'Black Friday'.
In short, although Intel will continue to sell 4G modems for PCs, the microprocessor giant will even abandon the market in the future. By the way, just look at the agreement between the company and MediaTek for the integration of 5G modems in new Intel Core notebooks.
Intel sold the modems department to Apple… But why? "Besides, what do you think about all this?" Share with us your opinion in the comments below.