After Apple and Qualcomm announced a settlement, Intel has announced that it will 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. The company will also continue to invest in its 5G network infrastructure business.
It added that it will continue to meet current customer commitments for its existing 4G smartphone modem product line, but it will not launch 5G modem products in the smartphone space, including those originally planned for launches in 2020.
Intel said that it will provide additional details about this in its upcoming first-quarter 2019 earnings release and conference call, scheduled for April 25.
Commenting on the same, Intel CEO Bob Swan, said:
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. 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.