News on January 10, Bloomberg reported on Monday, citing people familiar with the matter, that Apple plans to phase out Broadcom’s Wi-Fi and Bluetooth chips in 2025 and switch to its own chip design.
Apple has been working hard to get rid of its dependence on other chip manufacturers. For example, the latest Mac computers have begun to fully adopt self-developed M-series chips to replace Intel processors. According to Bloomberg, Apple plans to replace Broadcom’s Wi-Fi and Bluetooth chips with self-developed chips. Apple did not respond to a request for comment.
We found that Apple, as a major customer of Broadcom, accounts for about 20% of Broadcom’s revenue. Shares of Broadcom closed down 2% following the news. Stacy Rasgon, an analyst at financial services firm AB Bernstein, said Apple’s decision to phase out Wi-Fi and Bluetooth chips could cut Broadcom’s revenue by about $1 billion to $1.5 billion.
However, Broadcom’s radio frequency (RF) chips are complex to design and manufacture and are unlikely to be replaced anytime soon, he added. In addition, there is a piece of running news since the past year that Apple is also seeking to replace Qualcomm’s 5G baseband chips.
According to the report, by the end of 2024 or early 2025, Apple will switch to self-developed baseband chips.
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