Intel Corporation has announced that it wishes to exit the 5G modem business for mobiles to try and penetrate more into 4G and 5G modems for personal computers. Other industries where Intel will like to focus on is the Internet of Things devices and other data-centric landscapes.
The company assures that it will deliver on its existing promises for supplying 4G modems for Smartphones. However, the intention to pull out of 5G modems seems certain for the company. This will even encapsulate product launches earlier announced by the company for 2020.
“We are very excited about the opportunity in 5G and the ‘cloudification’ of the network, but in the smartphone modem business it has become apparent that there is no clear path to profitability and positive returns,” said Intel CEO Bob Swan. “5G continues to be a strategic priority across Intel, and our team has developed a valuable portfolio of wireless products and intellectual property. 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 will reveal more details about this announcement in its upcoming first-quarter earnings call.