Intel Cites Apple-Qualcomm Settlement as Reason Behind Exiting 5G Smartphone Modem Business

For the record, I'd just like to cite rain as a possible reason behind the ground sometimes being wet, but I'm very eager to hear more from Intel on this Apple-Qualcomm matter.

The way this has been playing out is very interesting. Sounds like there was some sort of back room cartel like deal that Intel and Apple were working out in order to prop up Intel's modem business and technology. Without Apple, Intel either has no actual business with their 5g modems, and can't technologically keep up.

based on everything so far, this is how I feel like it was being played.


Apple goes after Qualcomm in hope to publicly diminish Qualcomm's value and market cap.

Crippling Qualcomm's public image and driving down the market cap makes Qualcomm ripe for hostile take-over. It was believed that Broadcom was a top candidate to purchase Qualcomm at that time. Broadcom seems historically far more likely to make Apple favoured deals.

Something changed, and the valuation didn't continue to drop like Apple wanted. Instead, Qualcomm was poised to win a large portion of the lawsuits, to the point where Apple themselves were threatened to losing ability to sell their iphone 6 through X in major markets. qualcomm's stock rebounds and no outside takeover possible.

Qualcom Wins the major sticking point between the two. Apple realized that they are now in a losing position, and settle with Qualcomm out of court. Judging from the rumours and information in the settlement, Apple got a worse deal than they originally even had.

During all this, there were rumours, and Qualcomm complained that Apple was demanding source code. Qualcomm believed that providing it to Apple, Apple was feeding details and technology from that code to Intel. This sounds like Apple was setting up a fall back plan should the original plan to drive Qualcomm value down. The backup plan being, Get Intel technology so that their modems could compete. Thus, if qualcomm deal falls through, They could rely on Intel's favourable pricing. Intel likely didn't have much other business in 5g modems, and relied on Apple feeding them tech from Qualcomm to continue their development work, in addition, without any other major purchasers, there was just no business sense to keep making Intel modems.


it's a really interesting story, and I honestly didn't expect the outcome we had.

Makes total sense.

Intel expected a large order from Apple, and that order is now going to Qualcomm. That order would probably have been big enough to justify development cost to Intel. Now it's not.

This isn't anything shocking. The only shocking thing is how FAST they announced it right after the settlement.

That was prepared. The possible outcomes were: Apple wins and buys Intel chips. Apple wins and buys Qualcomm chips. Qualcomm wins and Apple buys Intel chips. Qualcomm wins and Apple buys Qualcomm chips. They settle and Apple buys Intel chips. They settle and Apple buys Qualcomm chips.

Intel had six press releases ready :-)

For the record, I'd just like to cite rain as a possible reason behind the ground sometimes being wet.

It doesn't feel normal to read your post without a gif.

Talk about circular logic - the only reason Apple settled with Qualcomm was because Intel couldn't deliver a working 5G chipset within a reasonable amount of time.

Oh, so NO FACTS at all, just some made-up numbers from some analyst.

I'm still waiting....


Meanwhile, you're conveniently forgetting Qualcomm has lost EVERY SINGLE antitrust case brought against them over modem licensing issues and has paid $4 billion in fines so far. And the FTC case still has to be decided (which should be fairly soon).

Must be nice to ignore FACTS like these and pretend they don't have any bearing at all on a case that was all about Qualcomm's illegal (illegal as they've been found guilt 5 times already) licensing model.

Yeah, I'll take an analyst's estimates who studies the industry and talks with its executives and suppliers over some random internet poster who's grasping at straws because he doesn't want look wrong in public. Have a nice day :)