Shares in chip maker Qualcomm have fallen more than seven per cent following reports that Apple is considering dropping it as a supplier of parts to its iPhones and iPads.
The stock had initially recovered some of its pre-market losses when the value of shares had plunged by the same amount.
Sources told Reuters that Qualcomm chips will no longer be used in the popular devices from the autumn of 2018, the season when it releases its new flagship phone each year, though Apple could still change course.
It comes as a result of a legal dispute between the two over licensing.
Apple earlier this year said it would drop another chip maker, the Imagination Technologies, instead making its own chips in house. The loss of its biggest customer forced it to put itself up for sale. A £550m deal for Imagination from Chinese private equity firm Canyon Bridge was today given the thumbs up by shareholders.