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Intel abandons 5G iPhone plans following Apple's Qualcomm settlement

Intel is dropping its 5G modem plans.
Intel is losing its 5G modem plans.

Symbol: Alexander Koerner / Getty Pictures

Welp, that was once speedy.

Simply hours after Apple and Qualcomm introduced that they might after all settled their long-running criminal fight, Intel says it is forsaking its plans for a 5G smartphone modem. 

“We’re very fascinated with the chance in 5G and the ‘cloudification’ of the community, however within the smartphone modem industry it has change into obvious that there’s no transparent trail to profitability and sure returns,” Intel CEO Bob Swan mentioned in a remark. 

Previous to the Qualcomm agreement, Intel was once Apple’s sole modem provider for the iPhone XS and XR. And Intel was once reportedly suffering to ship its deliberate 5G modem, elevating questions on whether or not Apple would even be capable of ship a 5G-ready iPhone in 2020. 

Now that Qualcomm is again within the fold — the 2 corporations reached a six-year licensing settlement and a “multi-year” chip provide deal — Apple not wishes Intel. And Intel, which up to now has struggled to ship its PC chips on agenda, has opted to ditch the venture solely.

The inside track would seem to indicate that Intel plans to ultimately go out the smartphone modem industry solely. Intel mentioned it’s going to “proceed to satisfy present buyer commitments for its present 4G smartphone modem product line,” and that it’s going to “entire an evaluate of the alternatives” for PC modems. The corporate may also invest can be in its “5G community infrastructure industry.”

Whilst that is nice information for Qualcomm, whose inventory shot up following information of the agreement, it does imply that Apple might be compelled to as soon as once more depend on a unmarried modem provider, one thing Apple has attempted to steer clear of up to now. 

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