Citi analyst Christopher Danely said he expects upside to both results and guidance when Qualcomm (QCOM) reports earnings next month and he would look to add to positions on weakness in a note partially titled "Qualcomm Stock Down on Apple Trying to Do Its Own Modems. We Still Expect a Repeat of Samsung So No Biggie."

Bloomberg's report that Apple (AAPL) has started its internal cellular modem chip development for 5G is weighing on Qualcomm shares but he has written about Apple going internal before, noted Danely. He continues to think Apple will end up like Samsung (SSNLF), meaning that it will use its own modems for low to mid-range phones and keep Qualcomm for its high-end devices, added the analyst.