Starting in 2025, Apple plans to replace Broadcom chips in its devices with in-house chips, according to Bloomberg News. A way to get your hands on the components that ensure the Wi-Fi and Bluetooth connectivity of your devices.
Apple’s in-house chips would also eventually replace Qualcomm’s chips, which power the iPhone’s cellular connectivity capabilities. Late last year, Apple analyst Ming-Chi Kuo noted that Apple had been trying to make a 5G chip for years, but its recent efforts had been unsuccessful.
Therefore, Apple has been forced to continue to rely on Qualcomm’s 5G chips for this year’s iPhone releases, according to Kuo. Apple’s chips have had issues with overheating, battery life and component validation, Bloomberg News says. Therefore, Apple’s plan is delayed.
A single chip that will combine the technology of all chips
During its fourth quarter earnings conference call, Qualcomm said that, “for Apple product revenue, we now expect to have the vast majority of 5G modem share for the iPhone launch in 2023, versus our previous assumption of 20%. Beyond that, there is no change in our planning assumption, and we assume a minimal contribution from Apple product revenue for FY25.”
It’s no surprise, however, that Apple is considering creating 5G chips to power its flagship iPhone, as the latter accounts for more than 50% of Apple’s revenue.
According to Bloomberg News, Apple is working on technology to create hardware to replace components in chips from Broadcom and Qualcomm. But Apple is also working on a single chip that will combine the technology of all the chips.
This creation would be a feat, but Apple has already created chips used in AirPods and Apple Watches.
Bloomberg News reports that in 2020, Apple spent $15 billion buying Broadcom chips, making Apple Broadcom’s top customer, accounting for 22% of its annual revenue.
Qualcomm, Broadcom and Apple did not immediately respond to comments.
Source: ZDNet.com