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...but...they do? Qualcomm Centriq directly competes with Xeons (or is intended to) and they build wireless solutions for devices and until recently directly competed on smartphone modems!

Such a powerful rival, I wasn't even aware of the competing product. OK, pick another one of three dozen ARM manufacturers as an example.

1) I think Apple could easily argue it was planning on leveraging it's chip design and manufacturing expertise into other areas. That's pretty reasonable. I could be seem them exploring licensing some of their IP to other manufacturers for example - ARM servers are gaining traction and Apple is a leader in the ARM space

2) Seems like the whole "rival" piece is not material to the lawsuit itself and is just a bit of editorializing on Reuters' part. The lawsuit probably centers on duty of loyalty and breach of contract

I agree that Nuvia doesn't compete with Apple but Qualcomm is actually a rival of Intel now because of their 8cx platform that's going into ultrabooks.