Broadcom Reaches Two Multi-Year Agreements With Apple for the Supply of Wireless Components

Broadcom Reaches Two Multi-Year Agreements With Apple for the Supply of Wireless Components

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Broadcom has announced that it's reached two multi-year agreements with Apple to supply the company with 'high-performance' wireless components.

Work agreements reached between the companies in 2019 and 2020 are expected to generate around $15 billion in revenue for Broadcom.

Here's the full statement via StreetInsider:

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Certain subsidiaries of Broadcom Inc. (the “Company”) have entered into two separate multi-year statement of work agreements (the “2020 SOWs”) with Apple Inc. (“Apple”). Both are for the supply of a range of specified high-performance wireless components and modules to Apple for use in its products.

The 2020 SOWs are in addition to the agreement between the Company and Apple entered into on June 9, 2019, which remains in effect with respect to the supply of specified RF components and modules to Apple (the “2019 SOW”). The 2020 SOWs, and the remaining portion of the 2019 SOW, apply to Apple products launched during the three and a half year period beginning in January 2020 (the “Covered Products”).

The Company estimates that, based on past experience, and subject to the Company’s ability to satisfy its applicable contractual obligations, the 2020 SOWs and the 2019 SOW could, collectively, generate aggregate total future revenue associated with the Covered Products of approximately $15 billion for the Company.
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Broadcom currently supplies Apple with an RF power amplifier module and a Wi-Fi/Bluetooth combo chip for the iPhone 11 Pro. The agreements announced today suggest that the company will continue to provide these wireless components to Apple for the next few years.

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Read More [via 9to5Mac]


Broadcom Reaches Two Multi-Year Agreements With Apple for the Supply of Wireless Components

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