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Apple Inc. (AAPL), QUALCOMM, Inc. (QCOM): This iPhone Rumor Keeps Coming Up. Does It Have Legs?

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If at first you don’t succeed, try, try again. The Apple Inc. (NASDAQ:AAPL) rumor mill has now churned out this same rumor three times. Is it possible that perhaps it has some legs to it?

With talk of Apple preparing to launch a more affordable iPhone to target emerging markets, likely at a mid-range price point, one of the big question marks is how Apple will reduce its component costs. This device will inevitably see lower margins than the flagship, but Apple should still be able to generate more gross profit than rivals are typically able to.

Apple Inc. (NASDAQ:AAPL)

One idea that’s been floated has been that the iPhone maker is considering tapping QUALCOMM, Inc. (NASDAQ:QCOM) and its lineup of Snapdragon mobile applications processors in order to keep costs down. The latest outlet to entertain this idea is China Times, which is reporting that Apple Inc. (NASDAQ:AAPL) is using a Snapdragon in its upcoming affordable iPhone.

This follows a report from DIGITIMES in January, which cited older generation Snapdragon models found in many flagship Androids of yesteryear. Just weeks after that report came another one from Detwiler Fenton saying that using a Snapdragon would result in cost savings.

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