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Apple iPhone to phase out Broadcom’s Wi-Fi and Bluetooth chips and Qualcomm 5G baseband chips

Bloomberg reported Monday, citing people familiar with the matter, that Apple plans to phase out Broadcom’s Wi-Fi and Bluetooth chips in 2025 in favor of its own chip design.

Apple has been trying to get rid of its dependence on other chip makers, for example, the latest Mac computers have begun to fully adopt its own M series chips to replace Intel processors.

According to Bloomberg, Apple plans to replace Broadcom’s Wi-Fi and Bluetooth chips with its own chips. Apple did not respond to a request for comment.

Apple iPhone 15

Apple, a major Broadcom customer, accounts for about 20 percent of Broadcom’s revenue. After the news, Broadcom’s shares closed down 2 percent.

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

In addition, there is a cliché that Apple is also looking to replace Qualcomm’s 5G baseband chips, reporting that by the end of 2024 or early 2025, Apple will switch to its own baseband chips.

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