Apple decision forces Intel to sell its 5G smartphone modem business
Intel has just confirmed plans to exit the smartphone business, as well as an auction of its 5G modem division. The announcement follows Apple’s decision to buy 5G smartphone modems from Qualcomm rather than Intel.
Although the US company says it will continue to produce 4G smartphone modems and honor all orders, it will no longer invest in 5G modem product line following the announcement. Instead, Intel will shift focus on its 5G network business, which is expected to grow in the coming years.
Intel Corporation today announced its intention to exit the 5G smartphone modem business and complete an assessment of the opportunities for 4G and 5G modems in PCs, internet of things devices and other data-centric devices. Intel will also continue to invest in its 5G network infrastructure business.The company will continue to meet current customer commitments for its existing 4G smartphone modem product line but does not expect to launch 5G modem products in the smartphone space, including those originally planned for launches in 2020.
Intel’s inability to meet Apple’s deadlines proved to be fatal for the business in the end, as the Cupertino-based company decided to make sure it’s got enough 5G modems in 2020. Left without the main client for its smartphone modem division, Intel is forced to cut its losses and refocus on those businesses that apparently bring much more money.