February 4, 2023
Apple Developing In-House Replacement for Broadcom Wi-Fi and Bluetooth Chip Used By iPhone [Report]

Apple Developing In-House Replacement for Broadcom Wi-Fi and Bluetooth Chip Used By iPhone [Report]

Posted January 10, 2023 at 3:12am by iClarified · 3072 views
Apple is developing an in-house replacement for the Broadcom Wi-Fi and Bluetooth chip used by the iPhone, according to a new report from Bloomberg. This is happening alongside efforts to develop a 5G modem to replace the one provided by Qualcomm.

Chip development has been major success for Apple with custom silicon now powering most of its popular devices, including the iPhone, iPad, Apple Watch, AirPods, and most recently, Macs. Custom chip design allows Apple to develop unique features that can be delivered on its own timeline with less outside risk. Additionally, it saves the company a lot of money.

While not limited to the Wi-Fi and Bluetooth chip, Apple accounts for around 20% of Broadcom's revenue, or $7 billion. Similarly, it accounts for around 22% of Qualcomm's revenue, or about $10 billion.

Bloomberg predicts that Apple will replace the Broadcom Wi-Fi and Bluetooth chip in 2025 which will significantly affect Broadcom's income. It allegedly plans to follow up by integrating its cellular modem into the component in a follow up version.

Apple is developing an in-house replacement for that chip and is aiming to start using it in its devices in 2025, the people said. 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.

While Broadcom still supplies Apple with other components, Apple has also been working to develop these components as well.

Qualcomm has already acknowledged that it will lose revenue from Apple stating in November that "For Apple product revenue, we now expect to have the vast majority of share of 5G modems for the 2023 iPhone launch, up from our previous 20% assumption. Beyond this, there are no changes to our planning assumption, and we are assuming minimal contribution from Apple product revenues in fiscal '25."

This lines up with a recent prediction from analyst Ming-Chi Kuo who believes that Apple may continue to use Qualcomm modems in the iPhone 16.

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Apple Developing In-House Replacement for Broadcom Wi-Fi and Bluetooth Chip Used By iPhone [Report]
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