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Intel Will Exit 5G Phone Modem Business, Hours After Apple and Qualcomm Settle Licensing Dispute (cnet.com)

Posted by BeauHD on from the it-all-makes-sense-now dept.

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.

4 of 114 comments (clear)

  1. Re:Urg by goombah99 · · Score: 5, Insightful

    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.
  2. They just cannot hack it by SuperKendall · · Score: 5, Interesting

    This is a bit surprising not so much because Intel has been having such a good time in phone silicon(since they haven't); but because I would have assumed that Intel would have considered an at least adequate cell modem to be essential

    They probably do consider that essential.

    But the fact is, they just cannot do as good a job as Qualcomm can. Losing Apple meant that there was no way they could fund the years required for Intel to build up the expertise needed.

    --
    "There is more worth loving than we have strength to love." - Brian Jay Stanley
  3. Real reason by viperidaenz · · Score: 5, Insightful

    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.

  4. Re:Urg by thatseattleguy · · Score: 5, Informative
    Those who follow the semiconductor market closely and don't have a horse in the race would beg to disagree with you on all points, especially your assessment of Qualcomm's FRAND practices:
    .

    ...it was pretty obvious that Apple was in the wrong, allegedly caught red handed, and dug the hole deeper with their petty and vindictive reactions. Qualcomm claims to have multiple emails where Apple gave sensitive trade secrets to a competitor, then refused to allow Qualcomm to exercise their contractual audit rights. While there may be some more evidence not presented publicly, it sure looks like Apple was in the wrong.

    Read Demerjian's whole piece here for a more complete picture:
    https://www.semiaccurate.com/2...