Qualcomm -2.8% as Apple mulls Intel modem purchase

• Bernstein cites reports of talks for Intel (NASDAQ:INTC) to sell its German smartphone business to Apple (NASDAQ:AAPL) and notes it would be a "reasonably cheap" move for Apple.
• Analyst Stacy Rasgon writes the deal's eventual impact on Qualcomm (NASDAQ:QCOM) would depend on whether Apple can develop a viable solution on a suitable timeline.
• In other Qualcomm news, Rasgon notes that new filings in the FTC case indicate the company is appealing and wants a stay of injunctive relief.
• Qualcomm shares are down 2.8% pre-market. Intel and Apple shares are down 0.5%.

Comments

[punchq]

Intel and Apple cannot compete with Qualcomm. The analog/mixed-signal and RF chip designers at Qualcomm are the best in the industry and the lower level engineering management are top-class there. It will be almost comical watching Apple try to emulate Qualcomm. Example is the lot of terrible GSM Intel chips they have on the iPhone 8/X/XS/XR. My iPhone 7 had better 4G than the new iPhone XR Max I bought last November.

[MassiveAttack1987]

I am not sure if the incompentency of Intel is the reason.
Intel makes everything wrong nowadays. They acquired Altera for the FPGA market, but Intel destroyed Altera (lots of talented people left).
Xilinx is the clear winner.
Intel should let potential unicorns go, so that they can survive.

[jsiracusejr]

We'll see if you feel the same way when Apple buys Intel's modem division then steals all Qualcomm's talent away from them, which is why Apple opened up an office in San Diego in the first place.

[Westfool]

HA.... love the play Appl... who they are.... used every trick to discredit QCOM (and I suspect involvement with China)... only negotiate cause Intel gave up.... and now they'll maybe buy a unit and that hurts QCOM? How many years out, right that should've already been baked in since we know what the duration of the current Appl deal is... of course they were just buying short-term time... that was obvious.

[djfunkydj]

if its a bad news story about qcom on s.a. its always betz..coincidence?

[djfunkydj]

maybe, maybe, maybe...intel couldnt develop a product that could beat or even match qcom tech. Just because the fruitco buys intel assets, it gets the same techies that intel had so how exactly are they all of a sudden a threat to qcom. Get a reality test plzzzzzz.

[Westfool]

Maybe Apple getting back to the supposed roots.... better chip design... that's what my buddy who got a scholarship to M.I.T. claimed waay back in the high school days.

[Dontbeevil]

"How to Fail Upward" - by a former Infineon group.

[GDPPP]

On a side note, stock is trading at 69.69 on this news while I type...

[Pitnick]

Nice.

[tlapp]

Qualcomm first rate technology, 2nd rate management. Imagine what it could have been if Broadcom merger was approved and Hock Tan running the ship. Would have been an awesome move.

[logiotek]

LOL Tan would have parted the business and cut all R&D, woulda looked good on paper today but would result in huge write downs tomorrow!

[Westfool]

Broadcom has a Valeant strategy.... get real. Imagine if they got to acquire NXPI is the very real reality.... and well it's often disappointing.

[Seriol]

Not sure why this news should move the needle. Buying the modem group means buying the engineers who haven't been able to keep up. If instead it's taken as a sign of Apple's commitment, then ask why hiring/poaching better minds isn't the way to go.

[investingInvestor]

Brandy did not tell you the bigger news.

FTC requested that Judge Koh reject Qualcomm's request to delay enforcement of the judgement terms.

FTC claims that 3 years of delay while Qualcomm plays the legal system for all the delay it can... would be very bad for business at a critical time.

[ca7711]

lol the litigator of the original lawsuit disagrees with the post trial motions? imagine that...... *insert sarcasm

[vjoy]

Ha Ha ...can't stop laughing.

Apple's modem team tat has been there around seems will never build anything.

Apple and Intel - two giants couldn't match QCOM despite years of scheming and stealing.

Now you think such substandard modem will help apple dream of matching QCOM on its own?

Drream on.

[Saurabh Incredible]

People were having the same laugh as you when Apple thought of making in-house Processor.

#KeepTrackOfHistory

[vjoy]

Is it the same apple who arrogantly picked a substandard modem and tried to sell but had to kneel before superior technology in the end?

A in-house processor needs not comply to any standards not inter-operate. Modems do. A frog might be king as long as it stays in its muddy pool. Moment it becomes over confident and steps out, reality will dawn. Keep dreaming.

[Chiron75]

Modem and battery management. I dont know about anyone else but the 6 and 7 are useless with intel battery management tech.

www.reddit.com/...

[t0nutz]

Long Intel here we come 50!

[akaPapaD]

So Apple ends up in the chip making(?) business and still has either to pay QCOM to use their patents, or to build/use an inferior product. If past is prologue, it'll be the latter.

[Bruce24]

Apple's goal (a few years out) is to integrate the Modem into it's iPhone/iPad SOCs. This lowers their costs as well as power consumption. Qualcomm was aware of this before they settled with Apple. Apple having an on SOC modem still would have them paying Qualcomm for licensing their IP.

[flightsfan]

The licensing fees for the IP won't be nearly as high as buying the whole modem from Qcom. Apple intends to integrate the modem onto their SOCs and at this point there is plenty of groundwork laid for that with Intel's modem group since they have done exactly that with other SOCs. Fees to use a few patents is far, far lower than buying a finished product that they can't integrate.

[JAFSTI]

They will not get non-sep and therefore their implementation will be inferior.

[drdcwright2576]

Qualcomm should refuse to sell to apple. Now

[Blue Cal]

Sorry, under contract now. Lol

[rsucre]

Drdcwright, too late now for Qualcomm. They signed an agreement to end all litigation, which includes commercial commitments. I think that all will end up fitting perfectly for Apple. The move they did a few years ago to bring the A system in a chip development in-house, ended up being a great one for Apple. Good precedent and hope this one ends up that way too.

[1nimo]

That would be stupid, better to get more money in and invest into more R&D so Apple will never use another modem etc