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Intel Explains Why It Had to Sell Its Modem Business to Apple

Intel Explains Why It Had to Sell Its Modem Business to Apple

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It has been nearly 4 months since Intel offered its modem industry to Apple. And what made the Santa Clara-based chipmaker to achieve this? Well, a brand new press liberate from Intel accuses Qualcomm for its choice to again out from the modem marketplace.

As you may know, Intel have been the usage of Qualcomm’s patented applied sciences to makes its personal modem. According to the emblem, the San Diego-based chipmaker had charged Intel royalties so top that the quantity used to be nearly equivalent to the modem itself.

As a results of top royalty fees, Intel’s modems had been dear. Qualcomm, however, provides its modem for far decrease costs, because it doesn’t have to pay the royalties. Therefore, it is smart for any OEM to purchase modems from Qualcomm slightly than that from Intel.

So, in accordance to the Santa Clara-based chipmaker, Qualcomm artificially and insurmountably created boundaries to truthful festival, growing its monopoly within the modem marketplace, due to which, Intel had no purchasers for its modems, main to its go out from the marketplace.

Apple used to be the one primary consumer Intel had for its modem throughout the quick length when the chipmaker’s modem department used to be doing industry. And here’s a fast throwback why Apple determined to purchase modems from Intel –

If you might be acquainted with the tech trade, you may know that the Cupertino-based tech massive used to acquire modems from Qualcomm. However, there have been a struggle between the 2 manufacturers, and then, Qualcomm denied to promote its modems to Apple. This used to be when Apple began getting modems for its smartphones from Intel.

Later on, Apple and Qualcomm settled their variations and made a deal the place the Cupertino-based tech massive agreed to use Qualcomm’s modem in its smartphones for the following six years. So, Intel misplaced the only and most effective primary consumer it had. Hence, the corporate determined to dump its modem industry. The iPhone maker noticed this as a chance to make investments for the long run and acquired Intel’s modem industry for one billion greenbacks.

Source: Intel

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