Intel throws in the 5G smartphone towel, Apple jumps back to Qualcomm

Yesterday there was the unexpected news about a patent license royalty deal between Apple and Qualcomm that settled the outstanding dispute between the two firms. It looks like we now know why Apple came back to the negotiation table.

Mere hours after the announcement about the deal between Apple and Qualcomm, Intel send out word that it's abandoning its effort to break into the 5G modem market for smartphones. Intel says it's still excited about the opportunities in 5G outside of the smartphone market. With Intel out of the picture, Qualcomm was Apple's only other option.

Intel Corporation today announced its intention to exit the 5G smartphone modem business and complete an assessment of the opportunities for 4G and 5G modems in PCs, internet of things devices and other data-centric devices. Intel will also continue to invest in its 5G network infrastructure 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.

“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.”

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