Intel Corporation today announced its intention to 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. Intel will also 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,” said Intel CEO Bob Swan.
Small back story:
Apple signed with intel to develop and produce the 5G chips amid their fight with qualcomm.
Intel aren't keeping up with apple's timeline.
Apple and qualcomm dropped the lawsuits against each other and signed a deal for the chips.
Intel hence no longer has exclusivity with apple and so, not enough profit in the development of those chips considering everyone else are buying from qualcomm. Also considering they might not make it to 2020 timeline, they aren't going to see any profits for it for awhile.
Yeah, pretty much. The day Apple announces they're dropping the lawsuit and settling with Qualcomm, Intel cancels 5G chips. It makes you wonder if it was because Intel was really that far behind with 5G or if it was Apple being picky and not believing in Intel's timelines. Probably a combination of both...