Qualcomm stock falls on speculation that Apple could turn to Intel

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Steve Mollenkopf, CEO of Qualcomm

Qualcomm shares fell 2 percent on Monday after KGI Securities said Apple might drop the chipmaker in favor of Intel as the supplier for modem chips in its next generation of iPhones.

Qualcomm has been a supplier of components to Apple for years but the relationship took a bad turn last year when Apple accused Qualcomm of overcharging for chips and refusing to pay some $1 billion in promised rebates.

“There is speculation that Apple might drop Qualcomm altogether for its next generation phones and I think that’s part of the reason the stock is down today,” said Angelo Zino, an analyst from CFRA Research.

According to technology news website 9TO5MAC, KGI said that Intel could meet Apple’s technical requirements and offer more competitive prices.

Intel shares were up 1 percent at $46.66.

The report from KGI came as Broadcom sweetened its bid to buy Qualcomm to more than $121 billion from an earlier $103 billion.

Reuters has not seen the note from KGI, whose Ming-Chi Kuo is among the financial world’s best known Apple analysts.

Apple could not immediately be reached for comment.