Apple decision forces Intel to auction its smartphone modem patents

Apple decision forces Intel to auction its smartphone modem patents
Intel confirmed plans to exit the smartphone business a few months ago, but news about the auction of its smartphone modem assets emerged only today. The announcement follows Apple's decision to buy 5G smartphone modems from Qualcomm rather than Intel.

Although the US company said it will continue to produce 4G smartphone modems and honor all orders, it will no longer invest in 5G modem product line following the announcement. Instead, Intel will shift focus on its 5G network business, which is expected to grow in the coming years.

According to a new report from IAM, Intel has decided to auction all its IP relating to cellular wireless connectivity. There are no less than 8,500 patents that Intel is now looking to sell in order to recover some of the resources it invested. The report also mentions that Intel is launching this auction separate to its efforts to sell the smartphone modem division, hoping that a potential buyer for both will appear.

Intel's inability to meet Apple's deadlines proved to be fatal for the business in the end, as the Cupertino-based company decided to make sure it's got enough 5G modems in 2020. Left without the main client for its smartphone modem division, Intel is forced to cut its losses and refocus on those businesses that apparently bring much more money.

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12 Comments

1. tonyv13

Posts: 125; Member since: Jun 07, 2015

Intel is getting attack on all fronts lol AMD has made it interesting these past few years.

8. sgodsell

Posts: 7598; Member since: Mar 16, 2013

Intel still has to pay Qualcomm for every modem chip they make. Plus when it comes to 5G modems, Intel not only has to pay Qualcomm again, but also to a few other 5G patent holders.

2. whatev

Posts: 2418; Member since: Oct 28, 2015

Apple’s impact and relevance

5. oldskool50 unregistered

Actually not on this case. Apple a deal with Intel based on a modem they knew didnt even work. Intel is new at making modems. Apple knew that too. Intel didnt have a completely working one either. A0ple.knew this too. Since Intel was only making the modem for Apple at this point, Intel breached their contract by not meeting the demand, which they both knew Intel likely wouldnt make it anyways and tmwhen Apple moved back to Qualcomm, Intel decides they no longer need to invest in it because the investment was for Apple to begin with. If I open a business solely to do something for Apple and then it doesnt work out I have 2 options. I can keep going and get another partner, or I can count my loser an stop. Intel stated to the public that that didn't make any money off this deal with Apple. This actually shows Apple making a bad decision to begin with, and it shows you seeing it in a totally blinded light.

7. whatev

Posts: 2418; Member since: Oct 28, 2015

Techie, did I ask for your reply? No, so stay in your cell please and stop annoying normal people on internet, thanks

9. sgodsell

Posts: 7598; Member since: Mar 16, 2013

You clearly don't know what you are talking about whatev. Especially when Intel has to pay Qualcomm for each and every modem chip they sell. When it comes to 5G modems it's going to be the same thing again. Only their are some other 5G patent holders involved, that are not Intel. So if Apple buys Intel's modem division, then ultimately Apple will have to pay Qualcomm for their patents anyway.

11. whatev

Posts: 2418; Member since: Oct 28, 2015

Sure sgodsell, but next time try not to cry so loud, I know you can’t get apple out of your head, but please don’t torment others because of that

3. TBomb

Posts: 1668; Member since: Dec 28, 2012

I'll throw in my offer of $100. Your move Intel.

4. Rampage_Taco

Posts: 1109; Member since: Jan 17, 2017

One company shouldn't be large enough that it's decisions have such a huge impact on another company, then again this can all be pointed back at Intel for falling short of Apple's demands, and not diversifying their portfolio of customers

6. oldskool50 unregistered

This was only on their modem division, which they setup as a partnership with Apple. But since they couldnt even make a working modem on time, Apple broke off because Intel blew the chance Apple invested in them. The problem I have with the 1hole deal is, Apple knew Intel was not ready. Their were plenty of internet facts where Intel stated they were having trouble with the modem. Apple knew this and used what they had anyways. Intel also stated, they didn't make any money on this deal with Apple and Phonearena posted that here. Apple was trying to push Qualcomm into a corner hoping the FTC would force them to change their agreed upon contract, and it all busted when Intel could not make a 5G modem in time, made a terrible 4G modem which Apple used anyways and are having issues and they drop their lawsuit with QC and then signed a. we deal where they are now paying more money then they did before. Apple made a bad decision again, but this time it bit them in the butt and Intel wasted time and money to partner with Apple, knowing they weren't even ready to begin with conserves them right. They should close it. After all, who is gonna buy a modem from Intel after their Apple debacle.

10. ShadowHammer

Posts: 212; Member since: Mar 13, 2015

This is a classic example to me of a situation in which a company (Qualcomm) has a monopoly on something, and can use that leverage to price gouge and do pretty much whatever they want. Mind you, that doesn't excuse Intel for not making the deadline, and nulling the contract with Apple, but it does put companies in a rough spot where they have to come back begging to Qualcomm. That must really tick off Apple, since they are a larger and more valued company.

12. emcdonald75

Posts: 167; Member since: Nov 07, 2012

Isn't Apple going to buy the patents and the Intel smartphone modem division? I thought after the six year deal with Qualcomm, Apple will begin making their own modems.

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