Intel’s Exit from 5G Smartphone Market Prompted Apple-Qualcomm Settlement

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.

Intel Announces Collaboration with Waymo

Intel Corp. announced an alliance with Google’s parent company Alphabet’s self-driving car units, Waymo on Monday, Sep 18, 2017. The world leading chipmaker stated that it had worked with Waymo earlier on its computer platform design to enable autonomous cars for the processing of information in the real time. Intel-based sensor processing technologies as well as technologies for connectivity and general computation were utilized in Chrysler Pacifica hybrid minivans that have been used by Waymo since 2015 for testing its self-driving system. Brian Krzanich, the Chief Executive at Intel, told Reuters that the company has created a customized piece if silicon, which fits the requirements of Waymo’s sensor fusion and has tapped the processing power of Intel.

“Over time both the firms will learn to expand the horizons of the software, down onto silicon, as one gets cost, performance, and power. There will be a continual tempo of innovation and the new silicon that is released, which is actually what both of them gain from this,” he added.

Intel had recently announced the acquisition of Mobileye, an autonomous vision company for US$15 bn. Now the chipmaker is pushing to venture into autonomous vehicles, a highly dynamic and fast-growing industry, across a wide range of business models. According to a number of industry experts, the collaboration of Intel with Waymo, will bring it at the forefront of autonomous technology business segment. This self-driving unit of Google has acknowledged the alliance with a supplier for the first time.