Apple looking to wave goodbye to Broadcom chipset by 2025
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Apple (NASDAQ:AAPL), as part of its ongoing efforts to use more of its own proprietary semiconductor technology in its devices, is on track to drop Broadcom (AVGO) as a provider of one of the iPhone's key communication chips.
Apple (AAPL) is reportedly set to replace the Broadcom (AVGO) chip with its own, homegrown chip that combines Wi-Fi and Bluetooth technology. The move comes as Apple (AAPL) is already preparing to drop cell modem chips made by Qualcomm (QCOM) in favor of its own modem chipsets by within the next two years.
According to a report from Bloomberg, Apple (AAPL) will replace the Broadcom (AVGO) chips by 2025. The move could be a major blow to Broadcom (AVGO) as Apple (AAPL) is Broadcom's (AVGO) biggest customer, and was responsible for about 20% of that company's most-recent fiscal-year sales.
Broadcom (AVGO) also supplies chipsets for Apple (AAPL) that are used for radio frequency technology and wireless charging, and Apple (AAPL) is reported to be working on its own parts for those technologies.
Apple (AAPL) has made no secret of its plans to build more of its owns components to run its devices. The company has already replaced nearly all Intel (INTC) processors in its Mac computers with its won Apple Silicon chips, and it is also using Apple Silicon processors in its line of iPads.
Apple (AAPL) shares rose slightly on Monday. Last week, Wedbush analyst Dan Ives said Apple (AAPL) remains his top pick for what he called an "overlooked" tech sector in 2023.