US electronics behemoth Intel has made the decision to withdraw from the 5G smartphone modem business following the unlikely resolution agreement that was brokered between Qualcomm and Apple.
Apple and Qualcomm managed to settle the dispute between both parties over royalty payments and reached a deal ahead of fresh court case that was set to get underway in San Diego next week.
The modems that connect smartphones to telecommunications networks were at the heart of the battle between Apple and Qualcomm. Following the announcement the dispute had been resolved Intel wasted no time in exiting the 5G smartphone modem business.
Intel had clearly recognized and identified that there was an opportunity for them to capitalize on the dispute between Apple and Qualcomm, and then Apple had turned to Intel before reaching the agreement with Qualcomm.
The lawsuit was expected to be a protracted legal battle, but after the unlikely resolution it’s expected that Apple and Qualcomm will now become partners again before there fall out in 2017.
Intel issued a statement in which it indicated that it would complete an assessment of the opportunities for 4G and 5G modems in PCs, Internet of Things devices and other data-centric devices while pursuing investment opportunities in its 5G network infrastructure business.
CEO Bob Swan insisted that 5G will remain a key focus for the US electronics conglomerate and said its diverse portfolio of products will help them to become a major player in the 5G space.
Swan said, “5G continues to be a strategic priority across Intel, and our team has developed a valuable portfolio of wireless products and intellectual property. We are assessing our options to realize the value we have created, including the opportunities in a wide variety of data-centric platforms and devices in a 5G world."
The company also added that it would meet commitments to customers for its existing 4G smartphone modem product line, though it has no plans to launch 5G smartphone modem products, including those previously set to premiere in 2020
Currently under deployment, ultra-fast 5G wireless networks require terminals that are equipped with 5G models and specific network infrastructure.
