NEW YORK (
(QCOM - Get Report)
is in the running for a slot in the next
(AAPL - Get Report)
iPhone, but reports of a victory could be greatly exaggerated.
Apple appears to be lining up its field of parts suppliers for the iPhone 5 due out next year, and Qualcomm may be in the mix. A report by Taipei's
Economic Daily News
cited by AppleInsider
suggests that Qualcomm may provide the so-called baseband or wireless communications chips for the iPhone 5 and a new version of the iPad.
The reports helped send Qualcomm shares up 2.5% to $45.44 and knocked down chip shop
(CRUS - Get Report)
8% in Thursday morning trading.
While it's no doubt certain that Qualcomm is among the field of designated suppliers for the upcoming LTE 4G version of the iPhone, it's very likely that the primary vendor has yet to be chosen, say analysts familiar with Apple's bake-off contests.
wireless unit, which
agreed to be acquired
(INTC - Get Report)
a month ago, is the incumbent chip supplier to Apple's iPhone and a leading candidate for the 4G job.
Also vying for the business is
, a 4G chip-making joint-venture between
If true to its track record, Apple will have a demanding list of feature requirements and prices to narrow the field to one primary vendor, say analysts.
The problem for Qualcomm is political.
The San Diego chip giant has been a key supplier to
Android devices that compete against the iPhone.
Qualcomm's Snapdragon processor is also expected to be in some of
Windows Phone 7 devices coming next month, putting it squarely in the wrong camp.
The favorites in this race are Infineon and perhaps more attractively ST Ericsson, which is expected to be very eager to gain the iPhone design win and the primary supplier role, say analysts.
So while Qualcomm is certainly in the field, it's doubtful to be the outstanding winner in Apple's eye.
--Written by Scott Moritz in New York.
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