Apple supplier Intel on Tuesday announced plans to exit the 5G smartphone modem business, with the decision arriving on the heels of a settlement reached in the wide sprawling Apple v. Qualcomm legal battle.
The news was announced in a brief press release posted to Intel’s website.
Along with a withdrawal from 5G modem development, the chipmaker will assess potential opportunities to integrate 4G and 5G modems in PCs, internet of things devices and other data-centric devices, the company said. Intel also expects to continue work in 5G network infrastructure.
“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.”
The announcement comes after Apple and Qualcomm reached a surprise settlement in a long-running legal war over patent licensing and royalties. Revealed earlier today, the settlement allows Qualcomm to once again enter Apple’s iPhone supply chain, presenting a competitor to Intel’s 5G solution.
Prior to the Qualcomm agreement, Apple was solely reliant on Intel baseband chips for its mobile products, including its flagship iPhone lineup.
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