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Intel exits 5G mobile modem market after Apple-Qualcomm multiyear deal settlement

Intel in a press statement wrote that the company does not expect to launch 5G modem products in the smartphone space, including those originally planned for launch in 2020.

  • Published: April 17, 2019 10:50 AM IST
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Source: Intel


After the Apple-Qualcomm multiyear deal settlement, Intel has announced its exit from 5G mobile modem market. On Tuesday, just hours after Apple and Qualcomm surprise settlement, Intel said that it has decided to leave the 5G mobile modem market to focus on 4G and 5G modems in PCs, internet of things devices and other data-centric devices.

Intel in a press statement wrote that 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 launch 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. “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.”

The ongoing legal war between the two tech giants Apple and Qualcomm came to an end on Tuesday. Both companies have been involved in a fight over licensing since January 2017. Apple accused Qualcomm of taking advantage of its chips patents to charge exorbitant amounts. But now companies agreed to “dismiss all litigation” against each other worldwide. As part of the settlement, Apple will now make a payment to Qualcomm for an undisclosed amount.

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Both Apple and Qualcomm have reached a six-year global patent licensing agreement, which may be extended for another two years. They’ve also agreed for Qualcomm to supply parts to Apple for multiple years, which likely means Qualcomm modems will once again appear in the future iPhones, reports TheVerge.

  • Published Date: April 17, 2019 10:50 AM IST