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Intel announced tonight that it has decided to leave the 5G mobile modem market to focus more on 4G and 5G modems for personal computers and smart devices, as well as its broader 5G infrastructure business. The announcement came just hours after Apple and Qualcomm reached a surprise deal over the ongoing dispute over patent infringement and royalties related to Apple's use of the Qualcomm modems in the iPhone.
It was probably Intel's decision that motivated Apple's and Qualcomm's decision – which was a surprise since it took place while the lawyers presented the pleadings of the last courtroom trial that took place. opened yesterday in southern California. But we do not know when Intel made this decision, or when it informed Apple, and Intel declined to comment. Whatever the case may be, phone makers like Apple will have to look elsewhere for their 5G radios now, which means that Intel has just divested this activity to Qualcomm.
"We are very excited about the opportunity of 5G and the cloudification of the network, but in the area of smartphone modems, it has become obvious that there is no Clear path to profitability and positive feedback, "said Bob Swan, CEO of Intel, in a statement. . "5G remains a strategic priority for Intel and our team has developed a valuable portfolio of wireless products and intellectual property. We are evaluating our options to realize the value we have created, including the opportunities offered by a wide variety of data-centric platforms and peripherals in a 5G world. "
Neither Apple nor Qualcomm has issued statements explaining why the settlement had occurred so abruptly. Nikkei reported this afternoon that Apple was increasingly concerned about Intel 's ability to provide next year' s iPhone models with 5G modems. Last year, Intel became Apple's only provider of modems for smartphones, as the dispute with Qualcomm remained stubborn and increasingly complex, resulting in numerous lawsuits around the world.
As part of the settlement, Apple will now pay Qualcomm an undisclosed royalty amount that the chip maker has charged Apple with deliberately withholding in the litigation. (Apple, on the contrary, initially accused Qualcomm of overcharging it for the use of its technology and components.) The two companies have now entered into a new six-year global patent licensing agreement, which could to be extended by two years.
It is almost certain that Apple will now exclusively use Qualcomm modems in the iPhone, including Qualcomm's 5G components that will likely be shipped to Apple's smartphones next year. The iPhone maker would work on 5G phones whose release is scheduled for 2020.
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