Intel CEO Bob Swan confirmed Thursday that his firm’s exit from the 5G mobile smartphone market was a direct result of Qualcomm and Apple settling their legal dispute. The company made its announcement shortly after Apple and Qualcomm revealed their settlement.
Intel ‘Didn’t See a Path’ For Making Money
Mr. Swan told the Wall Street Journal: “In light of the announcement of Apple and Qualcomm, we assessed the prospects for us to make money while delivering this technology for smartphones and concluded at the time that we just didn’t see a path.” The relationship between Apple and Intel had deteriorated, according to reports. This put Apple’s 5G plans at risk.
Furthermore, Mr. Swan did not dismiss the idea his firm might sell its 5G smartphone modem business. He said it was “evaluating alternatives on what’s the best course for our IP and our people.” Intel decided to continue manufacturing 5G chips for networking equipment and non-smartphone devices.