Let’s take a look at the story behind Intel and Qualcomm’s fraught relationship. Qualcomm entered the smartphone chip market early and dominated with its most advanced modem and smartphone processor technology. Intel entered the market late, and its Atom processors failed to beat Qualcomm’s Snapdragon processors. After suffering a $4 billion loss, Intel discontinued its Atom processors for smartphones. However, it continued to invest billions in modem technology. This investment paid off in 2016, when it secured Apple’s order for iPhone modems on the back of the licensing dispute between Apple and Qualcomm.

However, Apple and Qualcomm reached an out-of-court settlement for their two-year licensing dispute in April. On the same day, Intel exited the smartphone modem business and later in July announced the sale of this business to Apple. This brings us back to the present, and all is not well.