Intel is “surrendering” and no longer trying to build 5G modems after Apple decided to stop waiting and reached an agreement with Qualcomm.
Apple decided to no longer wait for Intel to deliver 5G modems for the future iPhone smartphone and decided to end the legal battle with Qualcomm in order to do business together again.
Intel had big problems in building 5G modems for Apple, and sources inside Apple told the media that if Apple waits for Intel to get its act together than the first 5G iPhone will only hit the market in 2011, two years after the rivals.
Intel’s announcement of stopping the 5G modems production comes shortly after Apple and Qualcomm reached a legal agreement. Qualcomm accused Apple of having access to Qualcomm confidential information which were then passed on to Intel so that Intel can build better 4G modems.
Apple broke all ties with Qualcomm and switched to Intel. Now Apple has to work with Qualcomm again in order to launch the iPhone 5G.
As part of the agreement, Apple will pay an undisclosed sum of money and the two companies signed a new six years contract that might be prolonged by an additional two years.
By doing a simple math this means that the next six iPhone smartphones will have Qualcomm technology and this means that the iPhone that will come in 2020 will be 5G compatible. On the other hand, Intel issued an apology and said that the 5G market is not very profitable for the company.
“We are excited with the 5G technology but we don’t see the 5G smartphones market as a clear path towards profitability. 5G continues to be a strategic priority for Intel and our team has created a valuable portfolio of wireless products” Intel’s boss Bob Swan said.