Intel Steps Out of the 5G Modem Business Following Deal Between Apple and Qualcomm

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Intel 5G Modems

Just hours after Apple and Qualcomm had dropped their litigation, Intel announced that they would be withdrawing themselves from the 5G smartphone modem business. This decision came as a surprise due to the fact that they had already announced their XMM 8160 5G modem, which was supposed to release in 2020. Instead, Intel said that they would be focusing on other domains, such as 5G network infrastructure and other data-centric projects.

Apple and Qualcomm signing a six-year deal could have been the reason behind Intel’s decision. With their deal starting on April 1st, Apple would be more inclined to use its partner’s 5G modems. Qualcomm announced the Snapdragon X55 modem, which is already proven to be superior and more reliable compared to their rivals in the industry.

This is what Intel had to say during their latest press release:

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“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.”

The company is still going to be producing 4G modems for its clients, but they aren’t looking to stay in the business in the coming future. But who knows? If Intel decides that this is turning out to be a lucrative market, they may decide to step in later on. We’ll just have to wait and find out.

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