Exclusive: Qualcomm to Power Apple iPhone | Technology | Financial Articles & Investing News | TheStreet.com.
pple (AAPL Quote) has chosen Qualcomm as its chip supplier for the new version of the iPhone headed to Verizon (VZ Quote) this summer, according to Northeast Securities analyst Ashok Kumar. Kumar confirmed the decision with the manufacturers and suppliers involved with the phone.
The win is the second high-profile victory for the San Diego tech shop this week. On Tuesday, Google (GOOG Quote) announced that its Nexus One phone — made by HTC — will be powered by Qualcomm’s Snapdragon chip.
“It’s looking like Qualcomm is beginning to be the one to beat,” says Kumar, referring to the company’s rising status in the smartphone race.
Apple and Qualcomm representatives were not immediately available for comment.
The iPhone win, while huge for Qualcomm, doesn’t involve its Snapdragon platform, but a 3G wireless technology chip for EV-DO, says Kumar.
Initially, Apple sought a chip that would allow it to sell a world phone, one that was compatible with the two leading wireless technologies — GSM and CDMA.
But Qualcomm and others failed to deliver. Instead, Apple elected to go with Qualcomm in its Verizon iPhone, which is expected to arrive soon after AT&T’s (T Quote) exclusive contract with Apple expires in June.
The loser in this deal is Germany’s Infineon (IFNNY Quote), the chip supplier to the AT&T iPhone.
Qualcomm shares are up 3% so far this year, continuing what was a 25% gain for 2009.
— Reported by Scott Moritz in New York