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Apple reportedly preparing to ditch Broadcom chips for in-house design: Bloomberg

Published 01/09/2023, 03:56 PM
Updated 01/09/2023, 04:25 PM
© Reuters.
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By Yasin Ebrahim

Investing.com -- Apple (NASDAQ:AAPL) is preparing to ditch the use of Broadcom (NASDAQ:AVGO) chips and Qualcomm modems in its devices as soon as 2024 and 2025, respectively, Bloomberg reported, citing unnamed sources. 

Broadcom ended 2% lower, while Qualcomm Incorporated (NASDAQ:QCOM) closed 0.6% lower.

 
Apple is working on a combined WiFi/Bluetooth chip for 2025 that will replace components from Broadcom, which makes about a fifth of its revenue from the tech giant, Bloomberg reported. 
 
The tech giant is also planning to start ditching Qualcomm, which makes about 22% of its sales from Apple, in favor of cellular modems by 2024 in one device, the report added.
 
The move is part of a plan to replace third-partner chips inside its devices with homegrown components. It comes a few years after Apple ended its 15-year partnership with Intel (NASDAQ:INTC) in which the latter's chips powered Apple's laptops and desktops.  

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