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TheStreet Open House

Exclusive: Qualcomm to Power iPhone

Stocks in this article: QCOMAAPLVZTIFNNY

Updated with Qualcomm comment.

SAN DIEGO ( TheStreet) -- Apparently it's bakeoff season in tech, and the latest blue ribbon goes to Qualcomm (QCOM).

Apple (AAPL) has chosen Qualcomm as its chip supplier for the new version of the iPhone headed to Verizon (VZ) this summer, according to Northeast Securities analyst Ashok Kumar. Kumar confirmed the decision with the manufacturers and suppliers involved with the phone.

iPhone 3GS

The win is the second high-profile victory for the San Diego tech shop this week. On Tuesday, Google (GOOG) 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 representatives were not immediately available for comment. And a Qualcomm rep said "nothing has been disclosed yet."

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) exclusive contract with Apple expires in June.

The loser in this deal is Germany's Infineon (IFNNY), 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

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