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Intel withdraws from 5G smartphone modem business following Apple-Qualcomm settlement

Xinhua
Intel announced Tuesday its decision to withdraw from 5G smartphone modem business, but will continue to invest in its efforts to build 5G network infrastructure.
Xinhua

Intel announced Tuesday its decision to withdraw from 5G smartphone modem business, but will continue to invest in its efforts to build 5G network infrastructure.

The company said it will complete an assessment of the opportunities for 4G and 5G modems in PCs, internet of things devices and other data-centric devices.

Intel will no longer launch 5G modem products in smartphones, including those originally planned for launches in 2020.

"We are very excited about the opportunity in 5G and the 'cloudification' of the network, but in the smartphone modem business it has become apparent that there is no clear path to profitability and positive returns," said Intel CEO Bob Swan.

Swan said 5G will continue to be a "strategic priority" for Intel. "We are assessing our options to realize the value we have created, including the opportunities in a wide variety of data-centric platforms and devices in a 5G world."

Intel's announcement to quit the business of 5G modems for mobile devices came on the heels of a settlement agreement unveiled by Apple and Qualcomm earlier Tuesday.

The two companies reached an agreement to dismiss all litigation between them worldwide. They also have reached a six-year license agreement, effective as of April 1, 2019, including a two-year option to extend, and a multiyear chipset supply agreement.

As one of the suppliers of Apple products, Intel has lagged behind its rival Qualcomm in the development of 5G modems for mobile phones.

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