Qualcomm shares fall after tech huge Apple says it has begun the transition to building its very first cellular modem to be utilized in future devices.
Shares of chipmaker Qualcomm ( QCOM) – Get Report slipped on Friday after tech huge Apple ( AAPL) – Get Report stated it had begun the shift to constructing its first cellular modem to be used in future gadgets.
The stock of the San Diego business at last check traded at $144.67, down 7.1%. Shares of Apple, Cupertino, Calif., were down 1.3% to $121.68.
Modems enable web connection in cellular phones and laptop computers.
Apple’s most current iPhones with 5G usage parts from Qualcomm, which is better understood for its smart device processors and modems.
On Thursday, Apple said its $1 billion acquisition of Intel’s ( INTC) – Get Report modem organization in 2019 helped the iPhone maker develop a team of software and hardware engineers to develop its own cellular modems.
“This year, we kicked off the development of our first internal cellular modem, which will make it possible for another essential tactical shift,” Apple’s senior vice president of hardware technologies, Johny Srouji, said.
“Long-term strategic investments like these are an important part of allowing our items and making certain we have an abundant pipeline of ingenious innovations for our future.”
Apple did not specify when the cellular modem would be all set to deliver in products, however a 2019 patent agreement between Apple and Qualcomm includes a six-year licensing pact, Bloomberg reported.
Apple also plans to present its newest series of microchips, which is designed in-house, as early as spring 2021, media reports recommended previously today.
The chips will outpace the performance of the most recent machines working on Intel’s hardware, Bloomberg reported.
This brand-new chip would succeed the M1. Apple’s M1 chip for its Mac lineup was revealed in November with guarantees of improved power and enhancements to its next-generation MacBook Air, Mac mini, and MacBook Pro products.