Intel Exiting 5G Smartphone Modem Business, Won't Make 5G iPhone Chips at All

Intel this afternoon announced plans to exit the 5G smartphone modem business to instead focus on opportunities for 4G and 5G modems in PCs, internet of things devices, and other data-centric devices.

The announcement comes just hours after Apple and Qualcomm reached a settlement and agreed to drop all litigation against one another. Intel said that it will continue current customer commitments for existing 4G smartphone modems, but it will not launch 5G modems in the smartphone space.

Intel 5G Modem
In a statement, Intel CEO Bob Swan said that there is "no clear path to profitability and positive returns" in the smartphone modem business.

"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."

Rumors earlier today suggested Apple would use Qualcomm's 5G chips in its 2020 iPhones, and now it's apparent that the Cupertino company has no choice with Intel opting to pull out of the chip business all together.

Following Apple's legal battle with Qualcomm, Intel was the sole supplier of modem chips for the 2018 iPhone lineup and planned to provide 5G chips for Apple in 2020.

Intel had been working on the XMM 8160 5G chip, which was going to be used in the 2020 ‌iPhone‌ lineup. Rumors earlier this month indicated the relationship between Apple and Intel had grown tense as Intel began missing developmental deadlines on the 5G chip, leading Apple to lose confidence in Intel's ability to provide the chips in time for a 2020 5G iPhone launch.

Apple appears to have been left with no choice but to settle with Qualcomm in order to be able to roll out a ‌5G iPhone‌ in 2020 as planned. Apple's settlement with Qualcomm included a six-year licensing agreement and a multiyear chipset supply agreement.

Apple is said to be sticking with Intel chips in 2019 because it's too late for the company to adopt Qualcomm's chips, but in 2020, Qualcomm may be Apple's only chip supplier once again.

To reduce its reliance on Qualcomm, Apple is working on its own chip technology, but Apple's own modem chips aren't expected to be ready until 2021.

Related Forum: iPhone

Popular Stories

iPhone 17 Pro and Air Feature

Two iPhone 17 Pro and iPhone Air Colors Appear to Scratch More Easily

Friday September 19, 2025 10:02 am PDT by
As reported by Bloomberg today, some of the new iPhone 17 Pro and iPhone Air models on display at Apple Stores today are already scratched and scuffed. French blog Consomac also reported on this topic. The scratches appear to be most prominent on models with darker finishes, including the iPhone 17 Pro and Pro Max in Deep Blue, and the iPhone Air in Space Black. Images Credit: Consoma ...
iOS 26

Everything New in iOS 26.1 Beta 1

Monday September 22, 2025 12:44 pm PDT by
Apple released the first beta of iOS 26.1 today, just a week after launching iOS 26. iOS 26.1 mainly adds new languages to Apple Intelligence, but there are a few other features that are worth knowing about. New Apple Intelligence Languages Apple Intelligence is now available in Danish, Dutch, Norwegian, Portuguese (Portugal), Swedish, Turkish, Chinese (Traditional), and Vietnamese. AirPo...
Apple Foldable Thumb

Foldable iPhone Like 'Two Titanium iPhone Airs' Joined at the Hinge

Monday September 22, 2025 2:16 am PDT by
Next year's rumored foldable iPhone will showcase an ultra-thin design resembling "two titanium iPhone Airs side-by-side," according to Bloomberg's Mark Gurman. Writing in the Q&A section of his latest Power On newsletter, Gurman says Apple's first foldable device will be "super thin and a design achievement," combining Apple's thinnest iPhone form factor with cutting-edge folding...
Apple Intelligence General Feature 2

iOS 26.1 Adds New Apple Intelligence Languages and Expands AirPods Live Translation

Monday September 22, 2025 11:15 am PDT by
With iOS 26.1, Apple Intelligence is gaining support for additional languages, including Danish, Dutch, Norwegian, Portuguese (Portugal), Swedish, Turkish, Chinese (Traditional), and Vietnamese. Apple announced plans to expand the languages that can be used with Apple Intelligence last year, and now the added language support is here. Apple Intelligence is now available in the following...
apple tv 4k new orange

Next Apple TV Expected to Launch This Year With These New Features

Monday September 22, 2025 10:00 am PDT by
The next Apple TV is expected to be released later this year, and a handful of new features and changes have been rumored for the device. Below, we recap what to expect from the next Apple TV, according to rumors. Likely Features N1 Chip With Wi-Fi 7 Last year, Bloomberg's Mark Gurman said the next Apple TV would be equipped with Apple's own combined Wi-Fi and Bluetooth chip, which is...
iPhone 17 Pro and Air N1 Feature

Some iPhone 17, iPhone 17 Pro, and iPhone Air Users Experiencing Intermittent Wi-Fi Issue

Monday September 22, 2025 8:44 am PDT by
Apple's latest iPhone models launched on Friday, and some early adopters of the devices are experiencing intermittent Wi-Fi issues. Affected customers say Wi-Fi connectivity periodically cuts out on the iPhone 17, iPhone 17 Pro, iPhone 17 Pro Max, and iPhone Air, with hundreds of comments about the issue posted across the MacRumors Forums, Reddit, and the Apple Support Community over the...
iOS 26

iOS 26.0.1 Coming Soon, Likely With iPhone Air and iPhone 17 Pro Fix

Thursday September 18, 2025 9:17 am PDT by
Apple is preparing to release iOS 26.0.1, according to a private account on X with a proven track record of sharing information about future iOS versions. The update will have a build number of 23A350, or similar, the account said. It is likely that iOS 26.0.1 will fix a camera-related bug on the new iPhone Air and iPhone 17 Pro models. In his iPhone Air review, CNN Underscored's Henry T. ...

Top Rated Comments

smartbot Avatar
84 months ago
I wonder if this is why Apple settled?
Score: 34 Votes (Like | Disagree)
Quu Avatar
84 months ago
I get the sense Apples deal with Qualcomm was not the result Intel was looking for.
Score: 30 Votes (Like | Disagree)
SoN1NjA Avatar
84 months ago
Honestly glad we’re going back to QC, their stuff just works better
Score: 29 Votes (Like | Disagree)
jase1125 Avatar
84 months ago
What next domino in the news cascade?
The Apple apologists will explain how this was in the Apple master plans and how Qualcomm capitulated to end the lawsuit. This proves exactly the opposite. Apple paid up as they should have.
Score: 23 Votes (Like | Disagree)
I7guy Avatar
84 months ago
This answers many unanswered questions. Didn’t see this coming.
Score: 20 Votes (Like | Disagree)
dlewis23 Avatar
84 months ago
That explains the news from earlier in the day.
Score: 16 Votes (Like | Disagree)