Following Apple’s deal with Qualcomm, Intel says it is exiting the 5G smartphone modem business

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Simply hours after Apple’s settlement with Qualcomm, Intel has introduced that it’s exiting the 5G smartphone modem enterprise. In a press launch, the corporate says that it’ll as a substitute deal with 5G community infrastructure.

Following Apple’s deal with Qualcomm, Intel says it is exiting the 5G smartphone modem business 1

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Following Apple’s deal with Qualcomm, Intel says it is exiting the 5G smartphone modem business 1

Intel says that it’ll “complete an assessment” of the alternatives for 4G and 5G modems in PCs, web of issues gadgets, and different data-centric gadgets. It would additionally proceed to “meet current customer commitments” for its present 4G smartphone modem efforts – such because the iPhone.

Going ahead, nonetheless, Intel says it doesn’t anticipate to launch 5G modem merchandise for smartphones, together with these initially deliberate for 2020:

Intel Company at present introduced its intention to exit the 5G smartphone modem enterprise and full an evaluation of the alternatives for 4G and 5G modems in PCs, web of issues gadgets and different data-centric gadgets. Intel may even proceed to put money into its 5G community infrastructure enterprise.

The corporate will proceed to satisfy present buyer commitments for its present 4G smartphone modem product line, however doesn’t anticipate to launch 5G modem merchandise within the smartphone area, together with these initially deliberate for launches in 2020.

Intel CEO Bob Swan stated that it’s clear there is no such thing as a “path to profitability and positive returns” for Intel within the smartphone modem enterprise:

“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,” stated 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.”

Apple was broadly anticipated to make use of Intel’s 5G modems with the iPhone beginning in 2020. A report just lately steered that Intel was struggling to meet deadlines and risked missing the iPhone’s 2020 window. The report elaborated on the pressure the modem enterprise placed on Intel, noting that knowledge infrastructure and different companies are extra worthwhile for the corporate.

Apple is now anticipated to make use of Qualcomm’s 5G modems with the iPhone in 2020. It now appears as if Intel bailed out of the modem enterprise, forcing Apple to decide in its authorized battle with Qualcomm.

Learn the full press release from Intel here.

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