Barclays analyst Blayne Curtis downgraded Qualcomm (QCOM) to Equal Weight saying the chipmaker has a “harder road ahead” with Intel (INTC) likely gaining share at Apple (AAPL) this year.
Apple is likely using Intel as a second source for modems, Curtis tells investors in a research note. He says he “clearly underestimated” Intel’s ability to lose billions of dollars in its pursuit of mobile.
Curtis has concerns over Qualcomm’s ability to drive the right level of profitability from the business it retains at Apple, saying a faster modem should never come at a lower selling price and higher costs. He cut his price target for the stock to $50 from $55. Qualcomm closed Friday down 13c to $50.86.
