14 DAY TRIAL // Intel has just announced that it’s giving up on the development of 5G modems for smartphones, and the company would continue investing in 4G and 5G chips for PCs, Internet of Things (IoT) devices, and other data-centric devices.
Additionally, Intel says its long-term plan is to continue to investing in 5G network infrastructure.
The announcement comes a few hours after Apple and Qualcomm announced an agreement that would bring modems developed by the San Diego-based chipmaker on the iPhone. A 5G modem is also expected to be used on the next-generation iPhone due in 2020.
No Intel 5G chip coming next year
Intel, however, hasn’t discussed the reasons behind its decision to abandon the 5G smartphone modem 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.
“5G continues to be a strategic priority across Intel, and our team has developed a valuable portfolio of wireless products and intellectual property. We are assessing our options to realize the value we have created, including the opportunities in a wide variety of data-centric platforms and devices in a 5G world.”
Apple switched to Intel chips exclusively after going to war with Qualcomm over patent royalties. With the smartphone market rapidly embracing 5G, Apple pressured Intel to develop such a chip, but people familiar with the matter suggested that a 5G modem on an iPhone was highly unlikely even on the 2020 generation.
Following today’s announcement, Intel says it no longer expects to launch a 5G modem in the smartphone business, so the 2020 unveiling is out of the table now. The existing 4G chip contracts won’t suffer any change until they expire, at which point the production of these modems would be dropped too.