It is reported that Apple will abandon Qualcomm and Broadcom chips: replace them with self-developed baseband in 2025
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Update time : 2023-01-21 17:42:51
Since the Intel baseband pulled the crotch and the iPhone signal was questioned by users around the world, Apple began to use Qualcomm baseband. At the moment, the effect is actually much better. However, Apple has never given up on its own baseband, and has invested heavily. After all, it is not a good thing for Apple to have its life in someone else's hands.
According to the latest reports, people familiar with the matter said that Apple has stepped up its self-research efforts and will install self-developed chips in 2025 to replace Broadcom's WiFi and Bluetooth functional chips. At the same time, Apple is also developing a new version, so that this self-developed chip can later integrate cellular baseband, WiFi and Bluetooth functions into one component.
The person revealed that Apple plans to build the first self-developed baseband chip by the end of 2024 or early 2025, directly replacing Qualcomm's baseband chip, and taking life into its own hands. In fact, Apple's original plan was to use a self-developed baseband this year, but due to research and development problems, it still failed to solve the problem and had to postpone the plan.
Apple is a very important customer for Broadcom and Qualcomm. In the last fiscal year, about 20% of Broadcom's revenue came from Apple, totaling nearly $7 billion; while Qualcomm's 22% annual sales came from Apple, worth nearly $10 billion. After the news broke, Broadcom shares fell as much as 4.7%, then narrowed their losses, and finally closed at $576.89, down 2%. Qualcomm shares fell 1.6% to $114.61, down 0.6%.
Stacy Rasgon, an analyst at financial services firm AB Bernstein, said Apple's decision to phase out Wi-Fi and Bluetooth chips could cut Broadcom's revenue by about $1 billion to $1.5 billion. However, he added that Broadcom's radio frequency (RF) chips are complex to design and manufacture and are unlikely to be replaced anytime soon. In addition, there is a cliché that Apple is also looking to replace Qualcomm's 5G baseband chips, with reports that by the end of 2024 or early 2025, Apple will switch to self-developed baseband chips.
