Intel says it will exit 5G phone modems just hours after Apple, Qualcomm settle

CNET | 4/16/2019 | Shara Tibken
blacky (Posted by) Level 3
Click For Photo: https://cnet1.cbsistatic.com/img/tri7oZ7M6SLEjOkdQWdpNtKmQ4c=/756x567/2016/12/28/b1419e8d-02fe-456b-8ebf-9bdcfa0a8fc6/intel-5g-modem-prototype.jpg

Intel's 5G modem was aimed for iPhones in 2020.

Intel will no longer be working on 5G chips for phones, leaving Apple with only one supplier for its iPhones, Qualcomm -- the same company that it was battling in court until midday Tuesday.

Intel - Tuesday - Modems - Next-generation - Wireless

Intel late Tuesday said it plans to cease working on modems for 5G, the next-generation of wireless technology expected to supercharge your mobile connection. It had been working on a processor for Apple, with the chip expected to be in iPhones in 2020. Lately there have been worries the chip wouldn't be ready until iPhones released in 2021.

"The company will continue to meet current customer commitments for its existing 4G smartphone modem product line, but does not expect to launch 5G modem products in the smartphone space, including those originally planned for launches in 2020," Intel said in a press release. Its only customer in modems is Apple.

Announcement - News - Tuesday - Apple - Qualcomm

The announcement follows news from earlier Tuesday that Apple and Qualcomm had reached a settlement in their battling over licensing royalties. The two sides announced the surprise agreement through a joint press release Tuesday at the same time lawyers presented opening arguments in a courthouse in Southern California. Apple and its contract manufacturers had given their statements, and Qualcomm's head lawyer had nearly finished his remarks when the courtroom buzzed with the unexpected news.

In a statement, Intel added that it will "complete an assessment of the opportunities for 4G and 5G modems in PCs, internet of things devices and other data-centric devices." It also said it will "continue to invest in its 5G network infrastructure business."

Opportunity - 'cloudification - Network - Smartphone - Modem

"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...
(Excerpt) Read more at: CNET
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