Quite unexpectedly, Intel announced it definitely leaves the 5G modem. They also canceled plans to open their first chip with support for fifth-generation networks that were supposed to reach the terminals by 2020, including the iPhone next year.
Through release, the manufacturer assures it they do not see a clear path to profitability for their business. These were the words of Bob Swann, Intel CEO: "We are very excited about the possibility of 5G and clouds on the network, but in the smartphone business it became clear that there is no clear path to profitability and positive returns."
Company of Santa Clara will focus entirely on 4G chips. However, it will continue to make investments related to 5G network infrastructures. "5G continues to be Intel's strategic priority, and our team has developed a valuable portfolio of wireless and intellectual property products. We evaluate our options to get the value we have created, including the capabilities of a wide variety of platforms and devices. the data in the 5G world, "added the manager.
Surprising news comes hours after Apple and Qualcomm settled their legal dispute over patents. If the conflict continues, it is likely that those in Cupertino will be forced to completely quit the Qualcomm 5G modem, leaving Intel as the only provider.
Thanks to a new agreement between the two parties involved, Apple will use Qualem's 5G modems from the iPhone 2020, information that is also supported by Nikkei. Although Intel did not pinpoint this situation as the main reason for abandoning the business, it is clear that they have lost their main customer, their future support over the 5G modem.