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Chronicles

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Sources: Apple is working on a combined Wi-Fi and Bluetooth chip to replace Broadcom components by 2025; plans to swap the Qualcomm modem in 2023 have hit snags

Apple Inc.'s push to replace the chips inside its devices with homegrown components will include dropping a key Broadcom Inc. part in 2025 …

Bloomberg Mark Gurman

Context & Ripple Effects

Apple had already begun developing its own cellular modem, while Broadcom’s earlier supply agreements projected substantial wireless-chip revenue from Apple devices through mid-2023. The reported combined Wi-Fi/Bluetooth effort extends that component-control strategy beyond the modem.

Later coverage describes a staged Wi-Fi and Bluetooth chip rollout across Apple products, while the modem program was still expected to begin only in select iPhones and take years to reach full deployment. That contrast makes the reported 2023 modem delays material: Apple’s supplier replacement timetable is not uniform across radio chips.

First-order effects

  • Apple gains a single in-house Wi-Fi/Bluetooth program aimed at reducing its dependence on Broadcom components, while Broadcom faces a potential future loss of design content in Apple devices.
  • Reported modem snags keep Qualcomm’s component in Apple’s near-term plans, separating the modem timeline from Apple’s Wi-Fi/Bluetooth replacement effort.

Second-order effects

  • Broadcom must defend its Apple position with custom-chip work and product roadmaps rather than assume earlier supply agreements translate into a permanent socket.
  • Apple’s product teams must sequence radio-chip transitions by device and function, as later plans place the Wi-Fi/Bluetooth chip in Apple TV and HomePod mini before a broader rollout.

Third-order effects

  • If Apple executes both programs, its radio architecture shifts from buying separate supplier components toward controlling more of the wireless stack internally, leaving external suppliers concentrated in harder-to-replace or customized roles.
  • The uneven modem and Wi-Fi/Bluetooth timelines show that vertical integration is a multi-year migration rather than a single supplier switch; execution complexity determines how quickly supplier exposure changes.

The trend: Apple is pursuing deeper control of its wireless silicon, but the differing progress of its modem and connectivity chips shows that supplier replacement proceeds component by component.

Discussion

  • @markgurman Mark Gurman on x
    Apple is working on a combined WiF/Bluetooth chip for 2025 that will replace components from Broadcom. It's also planning to start switching from Qualcomm for cellular modems by that year in one device, a challenging transition that will take 3 years. https://www.bloomberg.com/..…
  • @dcuthbert Daniel Cuthbert on x
    Given their track record with the M1 and M2, I'd say this could be very good for @apple. Designing their own Wi-Fi/Cellular/BT chip, done right with security added from the start, would cut down on a lot of legacy vulns often associated with said chips https://www.bloomberg.com/.…
  • @craigchamberlin Craig Chamberlin on x
    @zerohedge Apple is going full-on Monopoly.
  • @ericjhonsa Eric Jhonsa on x
    Looks like they plan to replace AVGO's Wi-Fi/Bluetooth SoC with an internal design rather than its RF chips. The latter would be much tougher to pull off.
  • @SamirKhazaka Samir Khazaka on x
    Will Apple renew its 5G licensing deal with Qualcomm in 2025, or will it bring more litigation... As Apple prepares its modem, is it preparing new litigation in tandem? Current Apple license ends in 2025 $AAPL $QCOM
  • @cgtnofficial @cgtnofficial on x
    Apple plans to drop key Broadcom chip to use in-house design, according to Bloomberg News.They are also swapping out Qualcom for homegrown modem.#cgtnamerica