Intel Quits 5G Modem Business Shortly After Apple And Qualcomm Reconcile

An Intel logo is seen at the company's offices in Petah Tikva, near Tel Aviv
An Intel logo is seen at the company's offices in Petah Tikva, near Tel Aviv, Israel (Photo: Reuters/NIR ELIAS)

Intel will no longer pursue the 5G modem manufacturing a few hours after Apple and Qualcomm made an agreement to end their royalty payment clash.

Intel surprised the technological industry on Tuesday, April 16 after making an announcement that they are taking their hands off the 5G modem manufacturing business. The company even said that they do not have plans of pursuing the 5G smartphone modem business in the near future.

The announcement from Intel came just a few hours after Apple announced that they have made an agreement with Qualcomm to put an end to the month-long clash between them. The Cupertino tech giant's announcement means that the two companies will be back together in business.

The United Stated electronic giant said through a statement released by Bob Swan, Intel's chief executive officer that they will assure that assessment of the opportunities for 4G and 5G modems in PCs, internet of things devices and other data-centric devices will be completed.

Intel explained that the move to withdraw from 5G smartphone modem business is for them to assess their options to realize the value that the company created in a 5G world. The electronics giant assured the public that 5G continues to be a strategic priority across the company. They added that a valuable portfolio of wireless products and intellectual property can be expected of them.

Intel's name has been in the news for the past months being Apple's remaining supplier of 5G smartphone modem. The tech giant was left with no other suppliers other than the electronic giant after being involved in an infringement lawsuit filed by Qualcomm.

Previous reports suggest that Huawei was willing to be Apple's supplier of 5G smartphone modems specifically the 5G Balong. The move came as a surprise for the Korea tech giant followers as they have been known never to sell their chips their competitors.

Huawei's willingness to sell Apple their 5G Balong was not enough. The Washington Lawmakers labeled the company as a security threat due to its ties with the Chinese government which leaves Apple with Intel alone.

Another report suggests that Apple's settlement with Qualcomm and Intel's announcement were not a coincidence. The source says that Apple paid Qualcomm an undisclosed amount upon knowing that they will lose their only supplier left.

Apple and Qualcomm deal which was effective April 1 comes with a multi-year chipset supply agreement as well as a six-year licensing deal. This means that iPhone 5G will still be launched in 2020 even with Intel quitting the 5G smartphone modem business.

© 2019 Business Times All rights reserved. Do not reproduce without permission.
Sign Up for Newsletters and Alerts