Intel has just announced plans to stop the development of 5G smartphone modem business. Intel wants to focus more on opportunities for 4G and 5G modems on PCs, internet of things (IoT) devices, and other data-centric devices.
Intel’s announcement came hours after Apple and Qualcomm reached a settlement and agreed to cancel all litigation with each other. Intel said, it would continue its current customer commitment to existing smartphone 4G modems but would not launch a 5G modem in the scope of smartphones.
5G Modem for Smartphone
“We are very pleased with the opportunities of 5G and cloudification, but in the smartphone modem business, there is no clear path to profit and achieve positive returns. 5G continues to be a strategic priority throughout the world, and our team has developed a valuable portfolio of wireless products and intellectual properties, “Intel CEO Bob Swan said in a statement reported by Mac Rumors, Wednesday (04/17/2019).
As is known, Intel is the sole supplier of modem chips for the iPhone in 2018 line. Moreover, they plan to provide 5G chips for Apple in 2020.
Intel has been working on the XMM 8160 5G chip, which will be used in the 2020 iPhone line. Earlier in this month, rumors indicated that the relationship between Apple and Intel was not really in a good way since the chipmaker could not finish developing its 5G chip on time.
Apple seems to lose confidence in Intel’s ability to provide the chip on time. Sadly, this technology company seems to have no choice but to launch the iPhone 5G 2020 according to plan.