Apple could drop a key Broadcom component in its push to develop and deploy in-house chips in iPhones in 2025, dealing a major set back to one of its biggest partners, Bloomberg reported.
The news outlet stated Apple is working on replacing Broadcom’s Wi-Fi and Bluetooth component, with the phase out expected by the end of 2024 or early 2025.
Bloomberg sources stated Apple had been working to replace the component for a number of years and it apparently developed its own follow-up version which combines the two functionalities along with other mobile capabilities.
For Broadcom, the loss of Apple as a big customer could have a major impact.
Apple’s business accounts for around 20 per cent of Broadcom’s revenue: asset management company AllianceBernstein told Reuters the move could hit the chip company’s revenue by up to $1.5 billion.
Broadcom CEO Hock Tan said in December 2022 it was aware Apple was reducing its dependence on the chipmaker.
Designing Broadcom out of its iPhones forms part of a wider push by Apple to reduce its reliance on external chipmakers.
It is well known the company is also working on an in-house 5G modem to use in its smartphones, which are currently supplied by Qualcomm.