Intel axes 5G modem plans after Apple and Qualcomm settle

“Chipmaker Intel conceded on Tuesday it would not release a 5G smartphone modem and was axing its plans to do so, just hours after rival Qualcomm made peace with Apple and set in motion a new era of co-operation between the companies,” Camilla Hodgson reports for Financial Times.
“Intel, which makes modem chips that go in smartphones, said it did not expect to launch a 5G phone chip, “including those originally planned for launches in 2020” — a reference to Apple’s planned 5G iPhone release,” Hodgson reports. “‘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 chief executive Bob Swan.”
“As the feud between Apple and Qualcomm over intellectual property and licensing worsened, the phonemaker had become reliant on Intel for chips,” Hodgson reports. “But the risk it might not be able to launch a 5G iPhone in 2020 had put pressure on Apple, and was likely a ‘tipping point’ in the decision between Apple and Qualcomm to settle, said Geoff Blaber, analyst at CCS Insight.”
Read more in the full article here.
MacDailyNews Take: Yet another sad trombone for Intel, a company that’s been reduced to being embarrassed on every front.
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Qualcomm and Apple settle, agree to drop all litigation – April 16, 2019
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