As Apple Inc. (AAPL - Get Report) fans await the tenth-anniversary iPhone, they have to come to terms with the idea that the coveted new device may not match the download speeds of Samsung Electronic Co.'s (SSNLF) Galaxy S8 and other cutting-edge smartphones.
Apple's next iPhone will use modems from both Intel Corp. (INTC - Get Report) and Qualcomm Inc. (QCOM - Get Report) . Intel's modems capable of 1 gigabit download speeds won't be ready for the iPhone 8 launch, Bloomberg reported, however causing Apple to throttle speeds on the Qualcomm chips that it uses as the companies engage in a complex global legal fight over intellectual property. This could give an edge to other manufacturers, such as Samsung, whose latest smartphones are capable of the faster download speeds.
On Sunday, Muzuho Securities USA Inc. analyst Abhey Lamba downgraded Apple from buy to neutral and cut his price target from $160 to $150. While Lamba expects iPhone 8 sales to be healthy, he suggested the benefits are already priced in to the stock price.
Shares of Apple closed down almost 3% at $145.32 Monday, after falling almost 4% on Friday.
Many of Apple's suppliers in Europe sold off on Monday, and the same held true for the tech giant's chip suppliers in the U.S. on Monday early afternoon.
Lam Research Corp. (LRCX - Get Report) dropped 2% to a close or $154.51, KLA-Tencor Corp. (KLAC - Get Report) fell 0.8% $101.14, Applied Materials Inc. (AMAT - Get Report) closed down 1% at $44.34, Broadcom Ltd. (AVGO - Get Report) declined .28% to $242.67, Qorvo Inc. (QRVO - Get Report) fell nearly 1.6% to $74.10 during morning tading but closed down less than a percent to $24.63.
Meanwhile, Intel closed up 0.1% to $35.73 and Qualcomm increased 0.8% to $57.49 per share.