The company feels its been Qual-conned REVENGE IS A DISH best served cold, and Intel has finally had a chance to put the boot in to the fellow microchip enthusiasts at Qualcomm, who forced the company out of the modem biz earlier this year. Back in July, Intel decided to sell the “majority” of its
The company feels its been Qual-conned
REVENGE IS A DISH best served cold, and Intel has finally had a chance to put the boot in to the fellow microchip enthusiasts at Qualcomm, who forced the company out of the modem biz earlier this year.
Back in July, Intel decided to sell the “majority” of its smartphone modem department to Apple for $1bn. That may sound like a lot to most people, but for a company of Apple’s riches, it’s considerably less big a deal.
And that might be why Intel now wonders if it was short changed. Qualcomm is currently appealing against an antitrust decision from the Federal Trade Commission, and Intel has lined up to give evidence against its old rivals, claiming that it sold its modem chip business at “a multi-billion dollar loss”.
Intel has clearly decided that it wants to wash its dirty laundry in public, with the company’s executive vice president and general counsel Steven Rogers popping his thoughts in a press release, as we all do when we’re personally wronged, but totally over it.
“Intel suffered the brunt of Qualcomm’s anticompetitive behavior, was denied opportunities in the modem market, was prevented from making sales to customers and was forced to sell at prices artificially skewed by Qualcomm,” he wrote, manfully holding back a tear.
“The victims were Qualcomm’s own customers (original equipment manufacturers or OEMs), the long list of competitors it forced out of the modem chip market, including Intel, and ultimately consumers,” he continued. “Intel fought for nearly a decade to build a profitable modem chip business. We invested billions, hired thousands, acquired two companies and built innovative world-class products that eventually made their way into Apple’s industry-leading iPhones, including the most recently released iPhone 11.
“But when all was said and done, 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.”
While this appeal may mean it’s time to sell Qualcomm shares, it’s clear that the market for tiny violins remains thoroughly buoyant. µ