Intel falls out of 5G Modem Business
Intel (INTC – Get Report) said late on Tuesday that it is escaping from the 5G modem business, just hours after Qualcomm (QCOM – Get Report) has settled a protracted patent match with Apple Inc. (AAPL – Get Report) .
As part of their settlement, Apple and Qualcomm agreed on a multi-year license agreement and a multi-year chipset supply agreement that is likely to return Qualcomm modems back to Apple iPhones. During the dispute, Intel has delivered Apple.
"In the smart phone industry, it has become clear that there is no clear path to profitability and positive returns," said Intel CEO Bob Swan in a statement. Intel "does not expect to launch 5G modem products in the smartphone space, including those originally planned for launches in 2020, the company says.
The so-called 5G wireless technology promises much higher data transfer rates and is seen as the key to the next generation of mobile phones, in addition to the growing field of autonomous driving and the development of connected devices, often referred to as the internet of things.
Intel said it will continue to meet current customer commitments for its
Intel shares rose 4% to $ 59.1[ads1]7 in demand trading Tuesday.
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