iPhone 5 Can Give Qualcomm a Small Bump
According to a recent report from AppleInsider, citing Commercial Times as the source, Apple (NASDAQ:AAPL) would dump Infineon chipsets in favor of Qualcomm (NASDAQ:QCOM) chipsets for the fifth-generation Apple (NASDAQ:AAPL) iPhone. The new iPhone would be based on the CDMA technology for which Qualcomm holds patents. Verizon (NYSE:VZ) supports the CDMA technology, and rumors have suggested that the iPhone will soon be available on the Verizon network as well.
iPhone 5 on Verizon
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If the iPhone 5 comes out on Verizon, it will benefit Qualcomm by increasing its CDMA penetration in mobile phones. This will lead to higher mobile chipset revenues. The mobile chipsets division currently comprises about 45% of the Trefis stock price
[trefis_forecast ticker=”QCOM” driver=”0065″]
Since we last reported on the iPhone 5’s impact on Qualcomm, there have been more indications that Apple will dump Infineon in favor of Qualcomm. In addition to the Commercial Times report, we believe that Intel’s (NASDAQ:INTC)-Infineon acquisition would mean that Apple would want to diversify its supplier base to reduce dependency on a single supplier. Currently, Intel supplies microprocessors for the Apple Mac.
Another reason could be that the relation between Apple and Intel has been tense of late. Intel recently criticized Apple by saying that the Apple TV was a step backward, compared to the soon-to-be-released Intel-powered Google TV, according to an interview conducted by Wall Street Journal.
You can see the complete $48.12 Trefis Price estimate for Qualcomm’s stock here.