Apple's upcoming iPhones and iPads may not include chips designed by Qualcomm, as the two companies are in courts over the Qualcomm's licensing terms. The development could be favorable for other chip makes such as Mediatek and Intel.

The change would affect iPhones released in the fall of 2018, but Apple could still change course before then, according to sources quoted by Reuters.

The Apple-Qualcomm dispute stems from a change in supply arrangements under which Qualcomm has stopped providing some software for Apple to test its chips in its iPhone designs, one of the people told Reuters. The two companies are locked in a multinational legal dispute over the Qualcomm's licensing terms to Apple.

Qualcomm told Reuters it is providing fully tested chips to Apple for iPhones. "We are committed to supporting Apple's new devices consistent with our support of all others in the industry," Qualcomm said in a statement.

The Wall Street Journal also reported that Apple could drop Qualcomm chips Monday.

Qualcomm has for several years supplied Apple's modems, but Intel has provided upward of half of Apple's modem chips for iPhones in recent years.

But still, it is not clear whether Apple fully intends to drop Qualcomm next year because Apple can likely make multiple contingency plans for different supplier scenarios.