Apple plans to replace Broadcom chips from its devices with an in-house design by 2025, Bloomberg News reported on Monday, citing people familiar with the matter.
The Iphone the manufacturer has worked to limit its reliance on other chipmakers, having switched to its own line of chips for recent Mac computer models, replacing models from clever.
Apple alternative plan by Broadcom Wi-Fi and Bluetooth chips, according to a Bloomberg News report, which adds that Apple is the US chipmaker’s biggest customer.
The Cupertino, California-based company accounts for about 20% of Broadcom’s revenue.
Stacy Rasgon, an analyst at financial services firm AB Bernstein, said Apple’s decision could increase Broadcom’s revenue by around $1 billion (roughly Rs 8,221) to $1.5 billion (about Rs 12,336). .
However, he added that Broadcom’s radio frequency, or RF, chips are complex to design and manufacture and are unlikely to be replaced in the short term.
Shares of Broadcom ended the session 2% lower.
Apple and Broadcom did not immediately respond to Reuters’ request for comment.
Apple is also looking to swap by Qualcomm According to the report, mobile modem chips will be manufactured in late 2024 or early 2025.
Qualcomm said it believes Apple will phase out its chips gradually. Apple uses Qualcomm’s X65 for 5G modems in its products iPhone 14″ According to Jefferies analyst William Yang, the chip family is expected to implement a newer version of the same chip in the iPhone 15 models that are likely to be released later this year.
A Qualcomm spokesperson pointed to the company’s November statement, where it said it expects “minimum contribution from Apple’s product revenue for fiscal year ’25.”
© Thomson Reuters 2023
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