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Intel (INTC – Get Report) announced Tuesday night the end of its business in the 5G modems sector, just hours after Qualcomm (QCOM – Get Report) settled a long patent battle with Apple Inc. ( AAPL – Get Report).
As part of their agreement, Apple and Qualcomm have entered into a multi-year license agreement and a multi-year chipset contract providing for the return of Qualcomm modems to Apple iPhones. During the conflict, Intel provided to Apple.
"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 statement. Intel "does not plan to launch 5G modem products in the smartphone space, including those originally planned for 2020," the company said.
The so-called 5G wireless technology offers the promise of much higher data transfer speeds and is considered essential for the next generation of mobile phones, as well as for the burgeoning field of autonomous driving and development. connected devices, commonly referred to as the Internet of Things.
Intel said it "will continue to meet its customers' current commitments for its existing 4G smartphone modem product line."
Intel's shares rose 4 percent to $ 59.17 after trading hours on Tuesday.
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