Qualcomm Stocks Fall As Intel Scores Chip Deal With Apple

In an attempt to diversify their supplier lines, Apple has teamed up with Intel for its mobile chips used in iPhones within the AT&T network. Thus far, Apple has had a long and executive partnership with Qualcomm and this move has the latter company already suffering in the stock market.

According to Bloomberg, iPhones within Verizon's network will still be fitted with Qualcomm chips and, luckily for the company, so will iPhones sold in China. While this means that Apple, Qualcomm's largest customer, is still keeping majority of its business with its initial partner, Qualcomm has fallen by as much as 2.9 percent.

The publication notes that the switch to Intel is a risky one for the company, as analysts still believe that Qualcomm's modems are superior to Intel's current offerings in terms of how much data a device can get from the network. However, this is a common move for mobile providers in order to ensure they are in the right position to negotiate price in future dealings.

Stacy Rasgon of Sanford C. Bernstein, an investment research firm, estimates that Qualcomm gets as much as $15 for every iPhone sold, or as much as $3.47 billion from Apple's 2015 fiscal figures.

CNBC reports on the insight provided by Mike Burton, an analyst at an investment bank and asset management firm, Brean Capital. According to Burton, Apple has a very meaningful influence on the general price of mobile phones and that "if Apple's aspirational device is not holding up the high end of pricing, the entire market tends to suffer."

The news site also points out that the slight shift to Intel is coming just as the company is cost-cutting due to a dip in PC sales. Apple is estimated to sell 22 million units under the AT&T network this year and 23 million in 2017. 

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