Qualcomm Shares Drop Due to Apple’s In-House Modem Plans

Qualcomm Incorporated (NASDAQ:QCOM) shares were down ~1% at $159 after Bloomberg reported that Apple Inc (NASDAQ:AAPL) plans to debut its in-house modem system by next spring, starting with the iPhone SE.

The entry-level smartphone, set for its first update since 2022, will feature the new component.

Qualcomm has been working to diversify its revenue streams as it braces for the potential end of its lucrative partnership with Apple. Last month, an analyst at President Capital Management warned that Apple’s move to in-house modems could significantly dent Qualcomm’s profits in the years ahead.

Apple intends to follow the initial rollout with increasingly advanced chips, aiming to phase out Qualcomm’s technology entirely by 2027, Bloomberg reported citing sources familiar with the matter.