Intel Exits 5G Smartphone Modem Business Following Apple Qualcomm Deal

Following Apple's announcement that a deal has been reached with Qualcomm to end litigation and use the company's modems, Intel has announced that it is exiting the 5G smartphone modem business.

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 plans to continue investing in its 5G network infrastructure business but will complete an assessment of the opportunities for 4G and 5G modems in PCs, internet of things devices and other data-centric devices.


“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.”

Apple's surprise deal with Qualcomm and Intel's exit from the 5G modem business comes after numerous reports that the company had been missing deadlines for the development of its 5G modem.

Intel says it will provide additional details in its upcoming first-quarter 2019 earnings release and conference call, scheduled for April 25.

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