Qualcomm Falls on Concern Apple May Switch to Another Chipmaker
- Shares drop 2% after CEO comments on earnings call Wednesday
- One of its `biggest customers' is going with a `second source'
Qualcomm Hit by Slowing Phone Demand
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Apple Inc. may be going in a new direction for a crucial iPhone component that connects the handset to the Internet, and such a suggestion caused Qualcomm shares to tumble.
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. 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.