The move is part of Apple's strategy to limit its reliance on other chipmakers and follows its recent transition to its line of chips for recent models of Mac computers, which replaced chips from Intel.
Impact on Broadcom Revenue
Apple's decision to replace Broadcom's Wi-Fi and Bluetooth chip with an in-house design is expected to hit Broadcom's revenue by about $1 billion to $1.5 billion, according to Stacy Rasgon, an analyst with AB Bernstein. However, he also noted that Broadcom's RF chips were complex to design and manufacture and unlikely to be replaced in the short term.
Apple's Chip Replacement Plans
Apple is also reportedly planning to replace Qualcomm's cellular modem chips with its own by the end of 2024 or early 2025. Qualcomm has said that it expects minimal contribution from Apple product revenue in fiscal '25. Apple uses Qualcomm's X65 for 5G modem in its iPhone 14 line and is expected to deploy a newer version of the same chip in the iPhone 15 models likely to be released later this year, according to Jefferies' analyst William Yang.
