Media reports that Samsung does not plan to use Qualcomm Inc.’s Snapdragon 810 chip for its next smart phone apparently sent Qualcomm (Nasdaq: QCOM) shares lower on Jan. 21 before they quickly recovered.
A Bloomberg report, citing unnamed sources, said Samsung has decided to use its own chip rather than a Qualcomm chip on its new Galaxy phone, adding that the Qualcomm chip overheated during testing. Several news outlets picked up the story. Bloomberg was unable to get official comment from either Qualcomm or South Korea-based Samsung. A Qualcomm representative declined a request for comment from the Business Journal.
Qualcomm shares closed at $72.48 on Jan. 20, prior to the story’s appearance. Shares opened 3 percent lower at $70.25 on Jan. 21, and climbed to close at $71.61 — down a little more than 1 percent.