Intel announces that it is abandoning the manufacture of 5G modems for mobile phones and leaves Qualcomm free to conquer the market

A piece of news that caught us by surprise this morning has Intel as its protagonist. The well-known processor manufacturer has announced that it is dropping out of the race and manufacturing of its 5G modems. A decision in which the agreement between Apple and Qualcomm can have a lot of influence

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A piece of news that has come to light through a statement signed by the CEO of Intel, Bob Swan, in which he affirms that the company from this moment on will focus on the manufacture of modems for PCs, Internet of Things (IoT) devices, and data-centric devicesA movement that does not mean that they stop collaborating to improve the 5G infrastructure."

The origin

The announcement by Qualcomm announcing a 6-year partnership with Apple to manufacture 5G modems for its products may have been the trigger for this position. In fact, in the statement, Bob Swan spoke of the path to profitability and positive returns when talking about the smartphone modem business.

The consequences

Leave smartphones behind but not 5G, which remains a strategic priority at Intel Swan further claims that the next April 25 will provide more data related to this movement that leaves Qualcomm in a very good position when it comes to positioning itself as a manufacturer of 5G modems for mobile devices.

Intel had been offering a very good relationship with Apple, so much so that appeared as the provider of 5G modems for the new iPhone that they would come to market. However, the problems they were having in terms of meeting the deadlines set by the volume of production required, motivated Apple to opt for Qualcomm, a change of plans that could have been fatal for Intel.

Ultimately, the company announces that will continue to meet current customer commitments regarding 4G modems for existing smartphones, but does not expect to launch 5G mobile modems, including those planned for 2020.

Via| MSPU Source | Intel