Seeing ‘No Clear Path’ to Profit, Intel Abandoning 5G Smartphone Modems

Intel will exit the 5G smartphone modem business and “complete an assessment of the opportunities” for 4G and 5G modems in PCs, IoT devices and other products, said the company Tuesday. It won’t abandon the 5G network infrastructure business, it said. Intel will continue servicing existing 4G smartphone modem orders but won’t introduce 5G smartphone modems, “including those originally planned for launches in 2020,” because it sees “no clear path to profitability and positive returns" in that space, it said. Intel developed a “valuable portfolio” of wireless products and intellectual property for 5G, it said. “We are assessing our options to realize the value we have created, including the opportunities in a wide variety of data-centric platforms and devices in a 5G world." Intel expects to give more details about the decision on its Q1 earnings call April 25, it said.