Qualcomm Climbs on iPhone Rumor
Updated with responses from Qualcomm and Verizon.
NEW YORK (
) -- Shares of wireless chipmaker
Qualcomm
(QCOM) - Get Report
rose in early trading on Tuesday following a
Wall Street Journal
report that
Apple
(AAPL) - Get Report
is planning a CDMA version of the iPhone
that could run on
Verizon's
(VZ) - Get Report
network.
Citing people briefed by Apple, the report said that the tech giant is developing the device to run on other networks in the U.S. besides
AT&T
(T) - Get Report
, which has maintained iPhone exclusivity in the U.S. since the product's launch in 2007. In addition, sources told the newspaper that Apple is planning a separate iPhone model update that is likely to be thinner and have a faster processor.
|
The Journal
also reported that the new CDMA iPhone could make its debut later this year.
, which
manufactures CDMA chips
, would be a likely candidate to provide silicon for a new iPhone. The rumors have pushed the company's stock up 54 cents, or 1.53%, to $42.40 shortly after market open. This outpaced the modest advance in tech stocks that saw the Nasdaq rise 0.49% in early trading.
Talk of a possible
deal has rattled around the blogosphere for months -- such a deal would significantly boost the chipmaker's business.
During Apple's recent first-quarter results, iPhone shipments climbed a massive 100% compared to the same period last year, helping grow the company's overall revenue by more than 30%. Apple has not yet revealed its long-term phone strategy.
Qualcomm declined to comment on this story when contacted by
TheStreet
.
Qualcomm, which already supplies CDMA chips to
Samsung
and
LG
,
recently raised its profit and sales guidance
, citing strong licensing performance and growing chip revenue.
Despite all the rumors swirling around the iPhone, some analysts and experts think that a
Verizon iPhone is unlikely to happen this year
.
Last month, for example, multiple industry sources and Wall Street analysts said that the iPhone may be
for longer than expected.
AT&T relies on a GSM network, whereas
and
Sprint
(S) - Get Report
use CDMA technology, hence the potential opening for Qualcomm. Verizon also has been wielding its network coverage as a cudgel in a slew of TV ads targeting AT&T.
"There is undoubtedly enormous pent-up demand for the iPhone on Verizon's superior network," wrote Craig Moffett, an analyst at Bernstein Research, in a note released on Tuesday. "iPhone availability will therefore mean an immediate acceleration for Verizon's subscriber growth and, conversely, immediate share losses for AT&T."
Verizon declined to comment on this story. Apple has not yet responded to
TheStreet's
request for comment.
-- Reported by James Rogers in New York
RELATED STORIES
>>Five Android Phones Attacking Apple
>>Sprint Swipes at Apple With 4G Phone
Follow James Rogers on
and become a fan of
TheStreet.com
on









