Apple to drop key Broadcom chip in 2025 for in-house design – Bloomberg News

Jan 9 (Reuters) – Apple (AAPL.O) plans to ditch Broadcom (AVGO.O) chips in its devices by 2025 and replace them with its own designs. Bloomberg News reported on Monday, citing a person familiar with the matter. matter.

The iPhone maker is working to limit its reliance on other chip makers, switching from Intel (INTC.O.) chips to its own in recent models of Mac computers.

Bloomberg reports that Apple will replace Broadcom’s Wi-Fi and Bluetooth chips with its own designs. Apple did not respond to Reuters’ request for comment.

Broadcom shares closed 2% lower. Apple accounts for about 20% of Broadcom’s revenue.

Apple’s decision to phase out Wi-Fi and Bluetooth chips is likely to hit Broadcom’s revenue by about $1 billion to $1.5 billion, said analysts at financial services firm AB Bernstein. says Stacy Rasgon. However, Broadcom’s radio frequency (RF) chips are complex to design and manufacture and unlikely to be replaced in the short term, he added.

According to the report, Apple also aims to replace Qualcomm’s (QCOM.O) cellular modem chips with its own by the end of 2024 or early 2025.

Qualcomm has already said that it believes Apple will phase out its chips. According to Jefferies analyst William Yang, Apple is using his Snapdragon X65 from Qualcomm in its iPhone 14 line, and he plans to use a new version of the same chip in the iPhone 15 model due to be released later this year. We plan to introduce it.

Broadcom and Qualcomm did not immediately respond to Reuters’ requests for comment.

Reported by Yuvraj Malik, Bangalore and Stephen Nellis, San Luis Obispo County. Edited by Devika Syamnath and Krishna Chandra Eluri

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