Intel leaves office hours of the 5G modem after payment by Apple with Qualcomm

Intel announces the cancellation of a range of 5G smartphone chips planned for launches in 2020. This announcement comes the same day that Apple announced a major agreement with Qualcomm on patent issues.

Qualcomm has long been a dominant player in the wireless chip business for smartphones. Apple fears becoming too dependent on a single supplier. Thus, in recent years, Apple has encouraged Intel to expand its wireless chip offering and has offered Intel a significant portion of its business in the field of 4G chips in the iPhone.

Last year, as the legal battle between Apple and Qualcomm intensified, Intel became the only Apple supplier for 4G wireless chips in the iPhone. Intel was also working on developing 5G chips that Apple would use in future versions of the iPhone. But recent reports have indicated that Intel "was running out of time" for the wireless chip that was to enter the 2020 model of the iPhone.

Fast Company announced earlier this month that "to be able to deliver a large number of these modems in time for the launch of the iPhone in September 2020, Intel must provide parts samples to Apple early in the year. Summer of this year, then 2020. "

If Intel had not provided 5G chips to Apple on time, it would have placed Apple in an untenable position. The iPhone competitors could offer 5G features with the help of Qualcomm chips, while Qualcomm could have denied Apple access to 5G chips as the patent battle would continue.

A little column A, a little column B …

It remains to be seen whether the settlement between Apple and Qualcomm has forced Intel to leave the 5G market or if the imminent release of Intel 5G market has forced Apple to adapt to Qualcomm. It is likely that the causal link has lasted a little bit in both directions.

As long as Apple would fight against Qualcomm, Intel could expect to provide chips for all Apple iPhones, thus offering enough scope to justify Intel's heavy investment in development of technology. But now that Apple and Qualcomm are once again able to work together, Intel can expect Qualcomm to provide at least some of the iPhone 2020's 5G chips – and Apple would have had more weight to negotiate better prices.

"In the area of ​​smartphone modems, it has become clear that there is no clear path to profitability and positive returns," said Intel CEO Bob Swan. , in a press release issued yesterday.

Intel says it will honor existing contracts for 4G chips and re-evaluate "the possibilities offered by 4G and 5G modems in PCs, devices for the Internet of Things and other devices focused on the data ". The company will continue to invest in 5G chips for network infrastructure.