Slashdot Mirror
Intel Will Exit 5G Phone Modem Business, Hours After Apple and Qualcomm Settle Licensing Dispute (cnet.com)
Intel announced Tuesday afternoon that it will no longer be working on 5G chips for smartphones, leaving Apple with only one supplier for its iPhones, Qualcomm -- the same company that it was battling in court until midday Tuesday. CNET reports: Intel late Tuesday said it plans to exit the 5G smartphone modem business. It had been working on a processor for Apple, with the chip expected to be in iPhones in 2020. Lately there have been worries the chip wouldn't be ready until iPhones released in 2021. "The company will continue to meet current customer commitments for its existing 4G smartphone modem product line, but does not expect to launch 5G modem products in the smartphone space, including those originally planned for launches in 2020," Intel said in a press release. Its only customer in modems is Apple.
Intel added that it will "complete an assessment of the opportunities for 4G and 5G modems in PCs, internet of things devices and other data-centric devices." It also said it will "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," Intel CEO Bob Swan said in a statement. The announcement comes hours after Apple and Qualcomm announced that they had reached a settlement in their multi-year battling over licensing royalties.
Intel added that it will "complete an assessment of the opportunities for 4G and 5G modems in PCs, internet of things devices and other data-centric devices." It also said it will "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," Intel CEO Bob Swan said in a statement. The announcement comes hours after Apple and Qualcomm announced that they had reached a settlement in their multi-year battling over licensing royalties.
This might explain the cryptic announcement in November by Qualcom that they felt that they and apple were close to negotiating an agreement. Apple responded by saying "huh? we haven't talked with Qualcom in 6 months".
How could Qualcom know apple would be agreeing if they were not talking? Maybe they somehow had inside info and knew Intel wasn't going to deliver on 5G so apple would me coming home to mama qualcom asking for forgiveness.
Some drink at the fountain of knowledge. Others just gargle.
Intel only wanted to do it because Apple guaranteed demand and gave them Qualcomm's IP to use.
No one else wants to pay Qualcomm patent license fees just to use an inferior chipset from Intel.