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Intel exits 5G smartphone modem market

By Cookie Monster - on 17 Apr 2019, 8:09am

Intel exits 5G smartphone modem market

Image source: Intel

Hours after Apple and Qualcomm agreed to dismiss all litigation, Intel announced its decision to exit the 5G smartphone modem business. 

Intel shared in a news release that there is "no clear path to profitability and positive returns" in the smartphone modem business. It will continue to meet current customer commitments for the existing 4G smartphone modems, but 5G modem products are not expected to launch in the smartphone space. These 5G modem products include those originally planned for launch in 2020.

Intel will assess 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. 

“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's decision to exit the 5G smartphone modem business could be the reason why Apple decided to reach an agreement with Qualcomm. 

Source: Intel via The Verge

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