Is Apple Inc. About to Cut Qualcomm Out?

Apple (NASDAQ: AAPL  ) has made a lot of progress with its custom A-chip designs over the past couple of years. Now the Mac maker may be looking to broaden its chip expertise. A new report says that Apple is preparing to start research and development on baseband processors, which would likely be for its 2015 iPhone models. Baseband processors are what manage radio functions such as cellular connectivity, which make them one of the most important components in any modern smartphone.

As the current exclusive baseband supplier to Apple, Qualcomm  (NASDAQ: QCOM  ) could potentially lose out if the rumors prove true. Apple contributes a hefty amount of revenue, although most of that is licensing related to cellular technology. However, developing cellular baseband technology is a monumental task, and Qualcomm's direct competitors have not been able to catch up after years of development and billions of dollars invested.

In this video from Tuesday's Tech Teardown, host Erin Kennedy and Motley Fool tech and telecom bureau chief Evan Niu discuss Apple's latest rumor.

Your cable company is scared, but you can get rich
You know cable's going away. But do you know how to profit? There's $2.2 trillion out there to be had. Currently, cable grabs a big piece of it. That won't last. And when cable falters, three companies are poised to benefit. Click here for their names. Hint: They're not Netflix, Google, and Apple. 

 


Read/Post Comments (0) | Recommend This Article (0)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

Be the first one to comment on this article.

Sponsored Links

Leaked: Apple's Next Smart Device
(Warning, it may shock you)
The secret is out... experts are predicting 458 million of these types of devices will be sold per year. 1 hyper-growth company stands to rake in maximum profit - and it's NOT Apple. Show me Apple's new smart gizmo!

DocumentId: 2907947, ~/Articles/ArticleHandler.aspx, 9/2/2014 5:10:54 AM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...


Advertisement