Apple’s efforts to create a vertically integrated supply chain for electronic components will not be limited to the development of its own modems, as Bloomberg notes, citing knowledgeable sources. By next year, it expects to replace Broadcom controllers with its own solution for working with Wi-Fi and Bluetooth wireless interfaces.
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According to Bloomberg, Apple has been developing a combined controller for these interfaces for several years, but will begin installing it in serial products only in 2025. Like other Apple components of its own design, the new chip for working with Wi-Fi and Bluetooth will be produced by the Taiwanese company TSMC. The program to replace these Broadcom components with its own is being implemented by Apple regardless of the transition from Qualcomm modems to its own, but sooner or later the corresponding solutions will begin to be simultaneously installed in various Apple devices.
The transition to our own component base allows us to achieve more reliable software integration, as well as reduce the cost of components and increase their energy efficiency. Apple is one of Broadcom’s largest customers, accounting for 20% of its revenue, so news of Apple’s impending migration to its own Wi-Fi and Bluetooth controllers sent the vendor’s shares down 3.9%. Apple’s own chips for this purpose could debut next year as part of the updated Apple TV and HomePod. Over the next year, they will also be included in the iPhone, and will reach the iPad and Mac in 2026.
In addition to collaborating on the server processor, Apple and Broadcom will maintain a relationship through the supply of RF filters for modems, which the latter will provide for the needs of the former. Before this, Apple tried its hand at creating wireless solutions for wearable electronics in the form of AirPods and Apple Watch. Apple’s own chip for more complex devices will, however, offer support for Wi-Fi 6E networks, which have higher bandwidth and information transfer speeds. The presence of its own components for working with wireless interfaces will allow Apple to ensure closer integration of its devices within the proprietary ecosystem.