Apple's next iPhone will use modems chips from Intel Corp, replacing those made by Qualcomm Inc in some versions of the new smartphone, Bloomberg reported, citing people familiar with the matter.
Intel's modem chips will be in iPhones used on AT&T Inc's US network and some other versions of the smartphone for overseas markets, Bloomberg reported on Friday.
However, iPhones sold in China will use Qualcomm chips, and iPhones on Verizon Communications Inc's network will also stick with Qualcomm, Bloomberg added.
Qualcomm's shares fell 1.7 percent on Friday, while Intel's stock was up 0.3 per cent. Apple shares were down 0.5 per cent in morning trading.
On an earnings call in April, Qualcomm Chief Executive Officer Steve Mollenkopf said he was assuming that a major customer would switch to multiple suppliers.
An Intel spokeswoman declined to comment on the story. Qualcomm and Apple were not immediately available for comment.