Intel (INTC - Get Report) said it was dropping out of the 5G modem business, just hours after Qualcomm (QCOM - Get Report) settled a long-running patent fight with Apple  (AAPL - Get Report)  .

As part of their settlement, Apple and Qualcomm reached agreement on a multiyear licensing deal and a multiyear chipset supply agreement which likely will see Qualcomm modems return to Apple iPhones. During the dispute, Intel has been supplying Apple.

"In the smartphone modem business it has become apparent that there is no clear path to profitability and positive returns," Intel CEO Bob Swan said in a statement on Tuesday. Intel "does not expect to launch 5G modem products in the smartphone space, including those originally planned for launches in 2020," the company said.

So-called 5G wireless technology offers the promise of much higher data transfer speeds and is seen as key to the next generation of mobile phones, as well as the burgeoning field of autonomous driving, and development of connected devices, commonly referred to as the internet of things.

Intel said it "will continue to meet current customer commitments for its existing 4G smartphone modem product line."

Shares of Intel were rising 3.5% in trading Wednesday to $58.71.

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