Apple’s potential switch for key iPhone component hits Qualcomm

“Apple Inc. may be going in a new direction for a crucial iPhone component that connects the handset to the Internet,” Adam Satariano and Ian King report for Bloomberg.

“Qualcomm Inc., the world’s largest maker of chips that go inside smartphones, indicated on an earnings call Wednesday that it may be losing some orders from Apple for modem chips that link the iPhone to the web,” Satariano and King report. “Qualcomm Chief Executive Officer Steve Mollenkopf told analysts he is ‘assuming’ that a major customer will give orders to a rival, indicating a potential loss of business for the company.”

“Analysts said they think the customer is Apple,” Satariano and King report. “Any switch Apple makes to suppliers that provide the components inside its devices can send ripples across the industry. Qualcomm’s stock fell in extended trading after Mollenkopf made his comments. Analysts including Tim Arcuri at Cowen & Co. have speculated that Apple may be partnering with Intel Corp. for the modem chip inside the iPhone.”

Read more in the full article here.

MacDailyNews Take: If so, there’s a sorely needed win for beleaguered Intel.

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