“Chipmaker Intel conceded on Tuesday it would not release a 5G smartphone modem and was axing its plans to do so, just hours after rival Qualcomm made peace with Apple and set in motion a new era of co-operation between the companies,” Camilla Hodgson reports for Financial Times.
“Intel, which makes modem chips that go in smartphones, said it did not expect to launch a 5G phone chip, “including those originally planned for launches in 2020” — a reference to Apple’s planned 5G iPhone release,” Hodgson reports. “‘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 chief executive Bob Swan.”
“As the feud between Apple and Qualcomm over intellectual property and licensing worsened, the phonemaker had become reliant on Intel for chips,” Hodgson reports. “But the risk it might not be able to launch a 5G iPhone in 2020 had put pressure on Apple, and was likely a ‘tipping point’ in the decision between Apple and Qualcomm to settle, said Geoff Blaber, analyst at CCS Insight.”
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MacDailyNews Take: Yet another sad trombone for Intel, a company that’s been reduced to being embarrassed on every front.
After settlement with Apple, Qualcomm still faces other potential legal fallout – April 16, 2019
Qualcomm and Apple settle, agree to drop all litigation – April 16, 2019
Intel rebuffs report, still plans to supply 5G modems for 2020 devices – April 5, 2019
Intel modem announcement likely means no 5G iPhone until 2020 – February 22, 2019