https://wccftech.com/intel-praised-by-analysts-on-existing-5g-modem-business/

In a surprise and somewhat unexpected move this week, Apple and Qualcomm extended an olive branch towards each other and entered a six-year patent licensing deal. Soon afterward, Intel announced that it is exiting the 5G modem business which might make you think that Apple’s and Qualcomm’s reconciliation worked out against Intel. It might have been quite the contrary, as Intel’s stock actually gained 3.7 percent following the news. In fact, the optimism of Wall Street analysts implies that the Cupertino giant’s and Qualcomm’s patch up may prove to be a blessing in disguise for the company.

When Apple had a falling out with Qualcomm, Intel became the beneficiary, winning all the modem orders, as evident in the 2018 iPhone lineup. However, the company was said to be struggling with 5G modems and this also apparently distracted it from its core, successful business which is making processors chips for PCs, notebooks, and servers. Moreover, Intel’s modem business looked like it was never able to make a decent amount of money. Sure, having a client such as Apple is a lucrative opportunity, but the company was reported losing approximately $2 billion annually in this venture.