Intel admits Apple-Qualcomm settlement led to it dropping 5G modem

“Intel Corp. lowered its financial expectations for the year and reported its first decline in sales of data-center chips in seven years, reflecting uncertainty in the business-computing market and slowing demand amid the U.S.-China trade battle,” Asa Fitch reports for The Wall Street Journal. “Chief Executive Bob Swan said Intel has become more cautious about the outlook for this year, although it expects market conditions to improve in the second half.”

“Mr. Swan this month decided to jettison a business of making modem chips for 5G smartphones that analysts say hadn’t been performing well. The move came after its main modem-chip customer, Apple Inc., settled a long-running legal dispute with Qualcomm Inc., paving the way for Qualcomm to start supplying chips for iPhones again,” Fitch reports. “In the interview Thursday, Mr. Swan said it was a direct result of the settlement between its customer and its rival. ‘In light of the announcement of Apple and Qualcomm, we assessed the prospects for us to make money while delivering this technology for smartphones and concluded at the time that we just didn’t see a path,’ Mr. Swan said.”

Read more in the full article here.

MacDailyNews Take: Intel’s floundering continues unabated.

SEE ALSO:
Winners and Losers of the Apple-Qualcomm detente – April 19, 2019
Why Intel’s smartphone strategy went off the rails yet again – April 19, 2019
Why did Intel kill off their modem program? – April 18, 2019
Here’s what likely happened between Apple, Qualcomm and Intel – April 17, 2019
Intel axes 5G modem plans after Apple and Qualcomm settle – April 17, 2019
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

1 Comment

  1. While this excuse may be true it doesn’t really hide the fact that yet again Intel have failed to deliver/execute.

    The sad truth is they were falling behind in development and even more embarrassing they were going to turn to TSMC to fab these 5G modems because they didn’t have a good enough process themselves.

    Add to this their constant delays with 10nm and it’s no wonder that Apple is in the process of making their own Mac chips. Even Windows computers are looking at ARM.

    If Intel don’t turn it around soon they may start to look irrelevant. I know, it’s unlikely but their relevancy may be questioned in a world of phones, tablets, laptop/convertibles. Maybe their plan is to become a server/infrastructure only company?

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