Intel has decided on stepping out of the 5G smartphone market as it wants to focus on the 5G infrastructure business. Along with this, it is taking efforts towards developing 5G and 4G modems for smart home devices and PCs. Intel arrived at this decision following the Apple and Qualcomm settlement. These two tech giants put an end to their legal battle pertaining to Qualcomm’s patent licensing practices.
Intel to Explore Opportunities in the Data-Centric Platforms
Apple had accused Qualcomm of charging hefty fees for essential patents. Moreover, it stated that Qualcomm was misusing the privilege of being one of the leading suppliers of smartphone modems. This battle has now bitten dust with a global patent licensing agreement of six years. Hours after this agreement, Intel announced that it will meet the current commitments for 4G smartphone products. However, it doesn’t intend to launch new 5G modem products including the ones set to launch in 2020. It is likely that Intel has conceded the business of 5G smartphone modems to Qualcomm. There is a high probability that Intel’s decision has prompted Apple and Qualcomm to enter a settlement.
In January, Intel appointed Robert Swan as the new permanent CEO. He said that there is no clear technique or way to profitability in smartphone modem business. However, Intel will flex its tech muscles in the realm of wireless products and data-centric platforms. Intel’s shares surged by four percent to reach a value of $58.7 following the announcement. The company will share further details pertaining to its earnings in the near future. Swan is hopeful that Intel’s investment in the internet of things devices will catapult its growth in the tech market.