Broadcom seals massive Apple supply deals - Mobile World Live

Broadcom seals massive Apple supply deals

24 JAN 2020

Broadcom sealed two new multi-year component supply agreements with Apple, which are expected to bring in billions in revenue for the company in the coming years.

In a regulatory filing, Broadcom noted the deals span a three-and-a-half year period and cover a range of “high-performance wireless components and modules” for Apple to use in its products. It added the agreements expand on a deal covering RF components and modules the companies signed in 2019.

Broadcom estimated the three agreements together will generate approximately $15 billion in future revenue.

The deals represent a win for Broadcom, coming despite a push from Apple in recent years to reduce its reliance on third-party suppliers and design its own kit.

Apple has long been a top customer for Broadcom, accounting for 25 per cent of its net revenue in 2018 and 20 per cent in 2019.

In a filing with the US Securities and Exchance Commission in December 2019, Broadcom acknowledged its growing dependence on a handful of key customers and warned any significant drop in demand from its top five would have a “material adverse effect on our business”.

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Diana Goovaerts

Diana is Mobile World Live's US Editor, reporting on infrastructure and spectrum rollouts, regulatory issues, and other carrier news from the US market. Diana came to GSMA from her former role as Editor of Wireless Week and CED Magazine, digital-only...

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