Following Apple’s settlement with Qualcomm on 5G modems, Intel is exiting the 5G smartphone modem business.
Apple has recently announced that it has made a deal with Qualcomm to end legal battle between both companies. This means we will likely see Qualcomm’s 5G modems in upcoming iPhones, but not before 2020, as affirmed in a report by the Asian publication Nikkei.
The long overdue legal battle between both American companies which started a few years back, just ended yesterday. As of now, Apple is expected to use Qualcomm’s 5G modems for 2020 iPhones which means that the Cupertino tech giant is not powering its 2019 iPhones with the latest networks.
To drop all litigation, Apple made an undisclosed payment (likely to be $7.5 billion) to Qualcomm. In addition, the settlement includes a six-year license agreement between the two companies, as well as a two-year option to extend and a multiyear chipset supply deal. However, the dispute between the two American tech giants resulted in the dissipation of the 5G race where South Korea and China have taken the lead. As the Nikkei reports,
“It is too late for Apple to use Qualcomm’s chips this year, but for 2020 it will purchase modem chips, including 5G modem chips, from the chipmaker for iPhones after finalizing the deal.”
Previously, Apple was going to rely on Intel for 5G iPhone modems, however, it lost confidence on Intel for not meeting its production requirements even for 2020 iPhones. As soon as the news of Apple’s settlement with Qualcomm broke out, Intel officially announced in a statement that;
“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.”