Intel quit 5G smartphone modem service, Does not compete with Qualcomm

Intel quit 5G smartphone modem service and will not compete with the competitor Qualcomm.

What is known?

According to Reuters, chip maker Intel announced that it will exit from the 5G smartphone modem business while evaluating the launch of 4G and 5G in personal computers, IoT devices, and other data-centric devices.

Earlier, Apple and Qualcomm had agreed to close all ongoing patent infringement lawsuits, ending the legal battle between the two tech giants to prosecute each other globally.

Intel said the company will continue to invest in its 5G network infrastructure business and continue to fulfill its commitment to providing 4G smartphone modem products to current customers.

But Intel said it expects it will not launch 5G modem products in the smartphone space, including products originally planned for launch in 2020.

What CEO said?

Intel CEO Bob Swan said in a statement: “We are very excited about the opportunities that 5G and the network ‘clouding’ are hidden, but in the smartphone modem business, there is clearly no clear profit and return. Path. 5G remains Intel’s strategic focus, and our team has developed many valuable wireless products and intellectual property. We are evaluating our choices to achieve the value we create, including the variety of data in the 5G world. Opportunities on the platform and equipment of the center.”

Intel is expected to provide more details in the first quarter of 2019 earnings and conference calls released on April 25.

The Agreement

According to the agreement between Apple and Qualcomm, Apple agreed to pay Qualcomm an undiscounted amount.

In addition, the two companies have reached a six-year global patent licensing agreement, which may be extended for another two years.

They also agreed that Qualcomm will continue to supply parts to Apple, which may mean that Qualcomm’s modem will appear on the iPhone again.

After the settlement agreement, Qualcomm’s share price soared 23%, while Apple’s share price rose less than 1%, while Intel’s share price fell sharply.

Source: Reuters

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