As part of Apple’s effort to replace the wireless chips within its iPhones with in-house components, the tech giant plans to drop Broadcom and Qualcomm.
Apple plans to drop Broadcom and Qualcomm in favor of in-house wireless chips
In the latest edition of his “Power On” newsletter for Bloomberg, Mark Gurman reveals that Apple’s efforts to create in-house chips for iPhone will gear up in the coming years. Gurman says that Apple is working on a cellular modem and a custom Wi-Fi and Bluetooth module for iPhone.
Apple plans to drop Broadcom and Qualcomm in favor of its own wireless chips. Apple’s moves to replace the components inside of its devices will escalate in the coming years. Beyond screens, Apple is working on two new components: a cellular modem and a custom Wi-Fi and Bluetooth module. These chips will let Apple cut its reliance on Qualcomm Inc. and Broadcom Inc.
The shift means the progress of Apple’s wireless technology will now depend on the speed and innovation of its hardware teams, rather than suppliers that also build components for rivals like Samsung Electronics Co. It also fits with a tenet of Steve Jobs that Apple should own its core underlying technologies.
Bloomberg has previously reported that Apple’s in-house wireless chips could be used in its iPhones by 2025 at the earliest. Apple was rumored to be working on an in-house baseband chip for the fourth-generation iPhone SE. However, TF Securities analyst Ming-Chi Kuo revealed that the budget-friendly iPhone was scrapped due to development issues with the 5G modem.
The exact reason for Apple wanting to drop Broadcom and Qualcomm has not been revealed, but it is possible that it is planning to do so to gain more control over its products and lessen its reliance on suppliers with whom it might not always be on cordial terms.
The tech giant famously engaged in a contentious royalties spat with Qualcomm that resulted in an expensive settlement, and Broadcom is known to make tough concessions. Although Apple-made components wouldn’t totally solve these issues, they may lessen the possibility of third companies impacting the tech giant’s business.
