Samsung Dropping Qualcomm's Chip, Shares Fall

Samsung decided against using Qualcomm, Inc.'s QCOM new Snapdragon chip in its next generation Samsung phone, Bloomberg reported.

According to the report, Samsung tested Qualcomm's chip, but decided to use its own microprocessor -- a move that may bolster the company's own production of processors.

Qualcomm’s revenue from its chip division was $18.7 billion last year, a gain of 12 percent from the prior year. Samsung accounted for 12 percent of those sales, according to Bloomberg’s supply chain analysis.

Qualcomm has moved 2.5 percent lower on the year.

Shortly after Wednesday's opening bell, shares were down 2.5 percent at $70.69.