QUALCOMM, Inc. (NASDAQ:QCOM)shares are trading down significantly after Apple Inc. (NASDAQ:AAPL) revealed its intention of slapping a lawsuit against the company. S&P Capital IQ analyst Zino thinks that legal issues could be a notable headwind for chip maker and that it might result in downside pricing risks to patents.
As a result, the analyst thinks that Intel Corporation (NASDAQ:INTC) could have the increasing potential to be a competitive threat on the mobile side. The company will release its fourth quarter results on Thursday and the expectations have already increased with the stable PC shipment market in the fourth quarter.
Apple blamed Qualcomm of making use of its position as a smartphone baseband chips maker to demand unfair terms for its technology. However, the chipmaker rebuked the claims and termed it as “baseless” and thinks that the tech bellwether has been encouraging regulatory attacks on its business. The company pointed out the South Korea decision, as well as, the FTC complaint.
However, the brokerage retained its Buy rating on Qualcomm shares and the price tag of $80 on the stock. This meant that the stock still presents more than 40 percent upside potentials from the current levels.
At last check, the stock traded down by 13.5 percent.