Intel admits Apple-Qualcomm settlement influenced its decision to drop 5G

Earlier this month, Intel suddenly announced it would stop work on mobile 5G modems in the immediate aftermath of Apple’s settlement with Qualcomm. Intel had been working on 5G tech for Apple, so it wasn’t hard to figure out why they decided to stop as soon as Apple and Qualcomm decided to work together again.

Still, at the time, Intel didn’t explicitly name the legal settlement as a reason for getting out of the mobile 5G game. CEO Bob Swan gestured at a lack of “profitability” for the decision instead. In an interview with the Wall Street Journal this week, Swan took a slightly different course and flatly admitted the settlement influenced its exit from mobile 5G development.

“In light of the announcement of Apple and Qualcomm, we assessed the prospects for us to make money while delivering this technology for smartphones and concluded at the time that we just didn’t see a path,” Swan told the Wall Street Journal.

Intel will still look into 5G development for devices other than smartphones, but the decision to end mobile development will cut about $2.6 billion out of its revenue by 2021, according to the Journal.

Apple had been working exclusively with Intel for modems for newer iPhones while it was still feuding with Qualcomm. It sounded like it would take a while for Intel to make a 5G modem for iPhones, with the consensus being that Qualcomm was better equipped to get it done. 

At the end of the day, this might be best for everyone involved. Intel doesn’t have to try to do something it may not have been able to do as well as Qualcomm, while iPhone owners will get a 5G model sooner than they may have otherwise. 

Still, it will be later than one of Apple’s chiefs competitors, Samsung. The Korean tech giant will launch its first phone with 5G next month, at least a year before Apple is expected to do it. The downside is that the phone starts at $1,300 and much of the United States doesn’t have access to 5G networks yet.