Intel stops developing 5G smartphone modems after Apple and Qualcomm deal

Intel is exiting the market for 5G modems for smartphones after Apple and Qualcomm decided to renew their long-term partnership. Intel is looking at how it will continue with the development of 4G and 5G modems for PCs, among others.

Intel announced in a short statement that it would stop developing its 5G modems for smartphones. In it, the company emphasized that it is fulfilling its obligations for the deliveries of existing 4G modems, but that no 5G modems are appearing. According to Intel’s original plans, those should appear in devices in 2020.

The cessation of 5G modems cannot be seen separately from Tuesday evening’s message that Apple and Qualcomm are suspending their legal battle worldwide. One of the disputes between those companies involved Qualcomm’s claim that Apple illegally provided details about Qualcomm modems to Intel. Intel has been a supplier of modems for the iPhone in recent years and even the exclusive supplier since 2018. Before that, the Cupertino company also purchased modems from Qualcomm. Apple is currently by far the most important customer of Intel’s modem business.

Now that Apple and Qualcomm have signed a multi-year agreement for the supply of chips, it seems that Intel is losing its largest modem customer, making further development unprofitable. At the end of 2018, Intel announced the XMM 8160 5G, the 5G modem likely intended for the iPhones in 2020. Modem development at Intel has not always been smooth and, according to Nikkei sources, Apple was concerned that its reliance on a single supplier jeopardize his plans to release a 5g iPhone next year. Qualcomm already has a 5g modem, the X50, which, according to the company, would appear in 30 devices this year.

Intel also announces it is looking at whether it still makes sense to move forward with 4G and 5G modems for PCs, Internet-of-things devices and other devices. Qualcomm is also a competitor in this area. That company is trying to gain a foothold in the PC market with Snapdragon SOCs with modems, with the so-called Always Connected PC. In any case, Intel promises to continue investing in 5G network infrastructure.