Analyst Jun Zhang of boutique research house Rosenblatt Securities cut his rating on shares of wireless chip giant Qualcomm to Neutral from Buy, following its fiscal Q2 results this week warning that the company's market share of baseband modems in the next iPhone "will be down to 35% from 60%," and that "gains in Chinese OEMs will not be enough to offset the 2H17 revenue decline from Apple."

Barron's report notes that "Qualcomm started competing with Intel for Apple's iPhone business with the latest model, the iPhone 7, which shipped in September of last year.

Citing 'recent supply chain work,' Zhang writes that Qualcomm's baseband chips sold to Apple in the second half of last year were 75 million units to 80 million units, and that the amount will drop to 45 million to 50 million in the second half of this year.

Zhang added that 'Apple accounts for roughly 18-20% of Qualcomm's revenue, and we believe the share loss will reduce Qualcomm's revenue by $200M per quarter in 2H17.'"

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