Apple's next iPhone to use mobile chips from Intel

Tech giant Apple Inc's next iPhone may not use the modem chips made by Qualcomm Inc but instead replace it with chips from the American multinational technology company Intel Corp.

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, the Reuters quoted the bloomberg.

However, iPhones sold in China will use Qualcomm chips, and iPhones on Verizon Communications Inc's network will also stick with Qualcomm.

Qualcomm's shares fell 1.7 percent with the news of this development while Intel shares rose up 0.3 percent.

Qualcomm Inc. is an American multinational semiconductor company that designs and markets wireless telecommunications products and service, while Intel on the other hand is one of the world's largest and highest valued semiconductor chip makers, based on revenue.