Unexpectedly, Intel announced that definitely abandons the business of 5G modem. They also canceled plans to launch their first chip with support for fifth-generation networks, which are expected to reach the terminals by 2020, including next year's iPhone.
Through the launch, the manufacturer ensures that they do not see a clear path of profitability for their business. These were the words of Bob Swan, CEO of Intel: "We are very excited about the 5G opportunity and the cloudiness of the network, but in the smartphone business it was clear that there is no clear path to profitability and positive returns. "
The company of Santa Clara will focus entirely on chips for 4G devices. However, it will continue to invest in 5G network infrastructures. "5G continues to be a strategic priority for Intel, and our team has developed a rich portfolio of wireless and intellectual property products. We are evaluating our options for the value we create, including opportunities across a broad range of platforms and devices. focused on data in a 5G world, "added the manager.
The Amazing News comes hours after Apple and Qualcomm settled their legal dispute over patents. If the conflict had continued, those in Cupertino were likely to be forced to completely give up Qualcomm's 5G modem, leaving Intel as the sole vendor.
Thanks to the new agreement between the two parties involved, Apple to use Qualcomm's 5G modems for iPhone 2020, information that is also corroborated Nikkei. Although Intel has not indicated this as the main reason for leaving the business, it is clear that they have lost their main customer, their future support for the 5G modem.