Apple has long been working to replace components in its devices with its own chips, most notably aiming to replace the Qualcomm 5G modem with its own modem. According to new details published by Bloomberg‘s reliable Mark Gurman, Apple could drop a key Broadcom component in 2025, while its modem chip could be ready for late 2024 or early 2025.
Gurman cites people familiar with the situation who asked not to be identified because the plans are private. The Broadcom component in question handles Wi-Fi and Bluetooth on Apple devices. Apple has started developing its in-house replacement and aims to use it in devices in 2025. Moreover, Apple is reportedly working on a follow-up chip that would combine Wi-Fi, Bluetooth, and cellular modem capabilities into a single component.
Apple is Broadcom’s largest customer and accounted for roughly 20 percent of the company’s revenue in the last fiscal year, Gurman reported.
Meanwhile, Apple’s work on a cellular modem has been moving along slowly. Rumours have swirled for years about Apple’s plan to replace Qualcomm chips in the iPhone with an in-house modem chip, and the company supposedly planned to make the transition this year. However, Apple reportedly delayed the switch after encountering issues with overheating, battery life, and more.
Gurman reports that Qualcomm received 22 percent of its annual sales from Apple.
If these details are accurate, it sounds like the 2025 iPhone could offer some significant changes in the wireless connectivity department. However, given Apple’s troubles with the in-house modem chip so far, it’s possible that other delays could push back the company’s plans. It also remains to be seen what, if any, benefit Apple’s in-house chips would bring. If Apple fails to make its chips at least as good as the components from Broadcom and Qualcomm, it could make the iPhone less compelling compared to other phones.
Source: Bloomberg
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