Qualcomm Inc., the world's largest maker of chips that go inside smartphones, indicated on an earnings call Wednesday that it may be losing some orders from Apple for modem chips that link the iPhone to the web. Qualcomm Chief Executive Officer Steve Mollenkopf told analysts he is "assuming" that a major customer will give orders to a rival, indicating a potential loss of business for the company.

According to Bloomberg, Mollenkopf made the comments in the context of assuring analysts that the company can deliver profit at the levels it has predicted even if its largest customers give some orders to other suppliers.

Any switch Apple makes to suppliers that provide the components inside its devices can send ripples across the industry. Qualcomm's stock fell in extended trading after Mollenkopf made his comments.

Analysts including Tim Arcuri at Cowen & Co. have speculated that Apple may be partnering with Intel Corp. for the modem chip inside the iPhone."

Last year we posted a report talking about Intel burning the midnight oil to get a new LTE modem ready for a future iPhone with speculation that it could be ready for the iPhone 7. The timing of Qualcomm's comments could support the coming shift.

On the flip-side, we learned back in February that Johny Srouji, Apple's senior VP for hardware technologies in Israel hinted that Apple may actually be working on a future in-house designed iPhone modem. In an interview with Bloomberg, Srouji admitted that Apple lags behind Samsung in some areas of chip development, such as adding a modem to the central processor to conserve space and power, yet he hinted that it might not be forever.

It's clear that one of these scenarios could now be in play with the latter likely being a longer term plan. In the shorter term, Intel's CEO Brian Krzanich cut 12,000 jobs on Tuesday noting that the restructuring of Intel would force them to reinvent their business.

The report noted that "While making the company more efficient, Intel plans to increase investments in the products and technologies that that will fuel revenue growth, and drive more profitable mobile and PC businesses. Through this comprehensive initiative, the company plans to increase investments in its data center, IoT, memory and connectivity businesses, as well as growing client segments such as 2-in-1s, gaming and home gateways."

Intel's "connectivity business" translates directly into advanced modems. A win here for Intel with Apple's next generation of iOS devices would certainly help to invigorate Intel's new focus.

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