Qualcomm building in San Diego
A Qualcomm sign is pictured at one of its many campus buildings in San Diego. REUTERS/Mike Blake

Shares of San Diego-based Qualcomm fell nearly 7 percent Tuesday after a report that Apple is designing new iPhones and iPads without the wireless giant’s modem chips.

Qualcomm stock closed down 3.65 points to 51.01 on NASDAQ, and was down further in after-hours trading.

The Wall Street Journal reported that Apple is considering building its popular devices with chips from Intel and possibly MediaTek because of a continuing dispute over royalty payments to Qualcomm for use of it’s CDMA wireless standard.

Apple has stopped paying royalties to Qualcomm, and the San Diego company has sued to halt the import of iPhones and iPads, which are assembled in China.

Ending the use of Qualcomm’s modem chips in Apple’s products would be an escalation of the dispute.

Chris Jennewein

Chris Jennewein is Editor & Publisher of Times of San Diego.