To Squeeze more profits out of the iPhone, Apple plans to replace chips now supplied by Broadcom and Qualcomm over the next several years
It's being reported this afternoon that Apple Inc.’s push to replace the chips inside its devices with homegrown components will include dropping a key Broadcom Inc. part in 2025, according to people familiar with the situation, dealing a blow to one of its biggest suppliers.
According to Bloomberg's Mark Gurman, Apple is developing an in-house replacement for a chip currently supplied by Broadcom that should be ready by some time in 2025. The chipmaker currently supplies Apple with a combined component that handles both Wi-Fi and Bluetooth functions on Apple devices.
In addition, it’s already working on a follow-up version that will combine cellular modem, Wi-Fi and Bluetooth capabilities into a single component.
With the shift away from Qualcomm modems, Apple plans to initially just use its homegrown component in one new product, such as a high-end iPhone model. It will then gradually move away from Qualcomm modems during a period it anticipates will take about three years — similar to how it handled past transitions.
For more, read the full Bloomberg report.