Intel announced Tuesday that was pulling out of the 5G smartphone modem business. The firm was expected to provide chips for a 5G iPhone. However, Apple and Qualcomm have now signed a multi-year deal.
‘No Clear Path to Profitability’ For Intel in Smartphone Modem Market
Intel said it will not launch the smartphone 5G modems scheduled for launch in 2020. It will though fulfil its 4G smartphone modem commitments. The firm’s CEO Bob Swan explained that with 5G “in the smartphone modem business it has become apparent that there is no clear path to profitability and positive returns.”
Mr. Swan said:
“5G continues to be a strategic priority across Intel, and our team has developed a valuable portfolio of wireless products and intellectual property. 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 was slated to supply modems for a 5G iPhone, expected 2020. However, the relationship between the two firms had deteriorated recently. Yesterday’s announcement came shortly after Apple and Qualcomm revealed that they had settled their legal dispute.