Skip to main content
Publish date:

Qualcomm Climbs on iPhone Rumor

Shares of Qualcomm rose Tuesday following a report that says Apple is planning a CDMA iPhone.

Updated with responses from Qualcomm and Verizon.

NEW YORK (

TheStreet

) -- Shares of wireless chipmaker

Qualcomm

(QCOM) - Get QUALCOMM Incorporated Report

rose in early trading on Tuesday following a

Wall Street Journal

report that

Apple

(AAPL) - Get Apple Inc. (AAPL) Report

is planning a CDMA version of the iPhone

that could run on

Verizon's

(VZ) - Get Verizon Communications Inc. Report

network.

TheStreet Recommends

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 AT&T Inc. 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.

Qualcomm

, 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

Qualcomm/Apple iPhone

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

staying exclusively at AT&T

for longer than expected.

AT&T relies on a GSM network, whereas

Verizon

and

Sprint

(S) - Get SENTINELONE, INC. 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

Twitter

and become a fan of

TheStreet.com

on

Facebook.