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Apple, the most significant iPhone company, is ready to launch its cellular chip. Apple has announced that it will launch its SIM in 2024 or early 2025. According to the latest news, the wireless chip is responsible for Bluetooth and WiFi connections. Currently, Apple is using Qualcomm’s cellular chips and Broadcom’s wireless ones.
According to official sources, Apple will introduce its first in-house wireless chip with iPhones in 2025. Moreover, Apple is thinking about combining cellular and wireless chips. As a result, this will help to reduce production costs, increase power draw, and require less space.
Indeed, this is just one of Apple’s numerous efforts to bring most of the manufacturing in-house and lessen its reliance on outside suppliers.
If we take the most recent example, silicon from Apple’s M series is undoubtedly successful for the company.
Apple is Broadcom’s largest customer and accounted for almost 20% of the chip maker’s revenue the last year. The amount was nearly $ 7 billion. On the other hand, Qualcomm got 22% of its annual sales from the iPhone maker, representing almost $10 billion.
The iPhone is Apple’s top moneymaker, generating more than half its $394.3 billion revenue. Moreover, the cellular company has helped fuel growth at Broadcom, which refers to Apple as its “large North American customer” during earning calls.
In addition, the chipmaker makes a combined component that handles WiFi and Bluetooth functions on Apple devices. Apple is all set to develop an in-house replacement for that chip and aims to establish it in its devices in 2025. It is also working on a follow-up version that will combine cellular modem, WiFi, and Bluetooth capabilities into a single component.
A Cupertino, California-based Apple declined to comment. Motor er, Broadcom also supplies the other components to Apple, including radio frequency chips and ones that handle wireless charging.
“We believe we have the best technology and delivering value to our customers,” said Broadcom Chief Executive Officer Hock Tan. ” There’s no reason to find something else where you’re not the best.”
In November, the chip maker said, “it is expected to supply the vast majority of modems for the 2023 iPhone launch up from a previous assumption of just 20%. Beyond this, there are no changes to the planning assumption. Moreover, we are assuming minimal contribution from Apple product revenues in fiscal 25”, Qualcomm said.
Alas, a cellular modem allows iPhone calls and internet connection while away from WiFi. In addition, if Apple’s offering is inferior to Qualcomm’s component, it could put the company’s flagship product at a significant disadvantage.
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