Presently, many tech giants are developing their smartphone technology for 5G networks, and Intel is pacing its way out. On Tuesday, Intel announced that it is escaping the 5G mobile modem market. Despite making 5G modems for smartphones, the chipmaker intends to step-in into 4G and 5G modems for PCs and home devices. The departure news arrives just hours after Apple and Qualcomm declared a six-year licensing agreement in the course of a royalty settlement. Intel shares soared around 4% to %58.97 in extended trading hours after the arrival of news. The company also announced that it would release further details about its strategies in its earnings report.
Intel’s CEO Bob Swan said the company did not see any possibilities of profit and beneficial returns for the smartphone modem business. Mr. Swan added 5G continues to be a strategic priority across Intel. Even more, the team has built a rich portfolio of wireless products and conceptual feature. Now the company is estimating alternatives to realize the value it has created. It includes opportunities in a broad spectrum of data-centric platforms and new 5G device. The chipmaker will continue to invest in its 5G infrastructure business.
The next-generation of wireless technology is expected to boost your mobile connection with extra energy and power. 5G is a wireless network connection with speed 100 times faster than existing 4G networks. So users can download a 3D movie or stream an 8K video in just a few seconds. The new framework will offer a more reliable service allowing more number of devices to join the network at the same time. Intel had been functioning on a processor for Apple. The phone maker intended the use the chip in the upcoming iPhone models. The chipmaker will continue to fulfill existing customer demands for 4G smartphone modem, but it will not introduce 5G modem products for smartphones. Mr. Swan said they are very excited about the opportunities in the next-generation network and its cloudification.