Why Qualcomm Stock Got Mashed on Monday
Specialty tech stock Qualcomm (NASDAQ: QCOM) didn't have such a special start to the trading week. The company's share price slipped by nearly 1%, on a disquieting media report that an important customer will part ways with it in the near future.
Apparently, that customer is none other than Apple (NASDAQ: AAPL). On Monday, Bloomberg reported that Apple will replace third-party components in its iPhones and iPads with its own goods. Citing "people familiar with the matter," the financial news agency wrote that one of the components will be Qualcomm's cellular modem chip, a key piece that allows for the devices to function as telephones. Apple will reportedly swap that out with a proprietary modem by the end of next year, or in early 2025.
Such a move would directly and profoundly impact Qualcomm, since the company derived 22% of its yearly income from the iPhone maker.
Source Fool.com
