Apple ditching Broadcom and Qualcomm for in-house chips

3 years ago 1

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Apple is developing an in-house cellular, Wi-Fi, and Bluetooth chip to replace the Broadcom and Qualcomm components it currently uses for its devices, Bloomberg reports.

The moves could prove a big blow to the chip suppliers and cause turbulence in an industry that makes billions supplying Apple.

During its earnings presentation for its fourth-quarter earnings in 2022, Qualcomm said it expects to supply the “vast majority” of 5G modems for iPhones in 2023.

It added that it expects to continue with a similar foothold at Apple in fiscal ’25.

“Beyond this [its outlook for 2023], there are no changes to our planning assumption, and we are assuming minimal contribution from Apple product revenues in fiscal ’25,” Qualcomm said.

However, according to Bloomberg, Qualcomm’s supply of 5G modems to Apple won’t last much longer than 2024, with the tech giant planning to shift to its own modems by the end of 2024 or early 2025.

Apple will initially use its own modem in just one device model and then transition its other products to the new modem over three years.

According to Bloomberg, developing Apple’s in-house components hasn’t been easy, with the iPhone manufacturer facing overheating, battery life, and validation issues.

However, if Apple’s in-house modem underperforms — or is inferior to Qualcomm’s — it could put the iPhone at a significant disadvantage.