Apple will abandon Qualcomm and Broadcom chips and expose an executive or leave

Qualcomm chip

Phoenix Net Technology News Beijing time on January 10, people familiar with the matter said that Apple’s efforts to promote chip autonomy include abandoning the use of a key component of Broadcom in 2025. That was a blow to Broadcom, one of Apple’s biggest suppliers.

Broadcom produces a combination function component for Apple that can handle both WiFi and Bluetooth functions on Apple devices. Apple is developing an in-house replacement for the chip and plans to start using it in its devices in 2025, the people said. And, the company is already working on a follow-up version that will combine cellular baseband, WiFi and Bluetooth functionality into one component.

As part of the shift, Apple also plans to have its first cellular baseband chip ready by late 2024 or early 2025, allowing it to replace Qualcomm’s baseband chip, according to people familiar with the matter. Apple had previously been expected to replace the Qualcomm component as early as this year, but development hurdles have delayed that timeline.

Apple is Broadcom’s largest customer. About 20 percent of Broadcom’s revenue came from Apple last fiscal year, totaling nearly $7 billion. 22% of Qualcomm’s annual sales come from Apple, worth nearly $10 billion. Still, Qualcomm has warned for years that the company’s reliance on Apple will wane.

After the news came out, Broadcom’s stock price fell as much as 4.7%, and then the decline narrowed, and finally closed at $576.89, down 2%. Qualcomm shares fell as much as 1.6 percent to close at $114.61, down 0.6 percent. Apple rose 0.4 percent to $130.15.

stern will resign

In addition, people familiar with the matter also revealed that Peter Stern (Peter Stern), Apple’s executive responsible for Apple TV+, iCloud, Apple One package service and News+ business, is about to leave, which exacerbates Apple’s recent personnel changes. Stern, a former vice president of services, was seen both inside and outside the company as a potential successor to Apple’s senior vice president of services, Eddy Cue. In response to Stern’s departure, Apple is assigning Stern’s responsibilities to various executives, including Oliver Schusser and Robert Kondrk, the people said. (Author/Xiao Yu)

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