Apple ‘To Replace Key Broadcom Part’ In iPhone

Apple is planning to cease using a key Wi-Fi and Bluetooth chip from Broadcom in its iPhones in 2025, according to a Bloomberg report, a move likely to reduce the chip maker’s income from its biggest customer.

The iPhone maker accounted for 20 percent of Broadcom’s revenue in the last financial year, or nearly $7 billion (£5.7bn).

The move is part of an ongoing campaign by Apple to eliminate key components supplied by third parties.

This has seen it migrate its Mac computers almost entirely away from Intel chips to its own Apple Silicon.

Homegrown parts

In addition to the Wi-Fi and Bluetooth chip Apple is reportedly working on a follow-up that combines Wi-Fi, Bluetooth and a cellular modem.

Apple has been developing its first cellular modem chip for some time to replace a part from Qualcomm, and had hoped to begin using it this year, but has reportedly pushed the date back due to development hitches.

Apple now expects to begin using its own cellular modem chips by the end of 2024 or early 2025, according to the report, which cited unnamed sources.

Qualcomm declined to comment other than referring to a previous statement from November in which it said it expects a “minimal contribution from Apple product revenue in fiscal ’25”.

RF replacement

Apple is also working on replacements for other Broadcom parts it uses, such as radio-frequency chips and wireless charging parts, but industry watchers say the RF chip may be some time coming as such parts are complex to design and manufacture.

AB Bernstein analyst Stacy Rasgon estimated Apple’s switch to the homegrown Wi-Fi and Bluetooth chip would reduce Broadcom’s revenue by about $1bn to $1.5bn.