Apple Inc’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 U.S. network and some other versions of the smartphone for overseas markets, Bloomberg reported on Friday.

However, iPhones sold in China will use Qualcomm chips, Bloomberg added.

Qualcomm’s shares fell 1.7%  on Friday, while Intel’s stock was up 0.3 percent. Apple shares were down 0.5 percent in morning trading.

On an earnings call in April, Qualcomm CEO Steve Mollenkopf said he was assuming that a major customer would switch to multiple suppliers.

Qualcomm CEO Steve Mollenkopf told analysts on an earnings conference call in April that he was assuming that a major customer would switch to multiple suppliers. Qualcomm’s other major customer is Samsung Electronics Co. which already uses multiple component providers for its phones.

An Intel spokeswoman declined to comment on the story. Qualcomm and Apple were not immediately available for comment.

[Reuters]