Investing.com — Apple (NASDAQ:AAPL) is preparing to ditch the use of Broadcom (NASDAQ:AVGO) chips and Qualcomm modems in its devices as soon as 2024 and 2025, respectively, Bloomberg reported, citing unnamed sources.
Broadcom ended 2% lower, while Qualcomm Incorporated (NASDAQ:QCOM) closed 0.6% lower.
Apple is working on a combined WiFi/Bluetooth chip for 2025 that will replace components from Broadcom, which makes about a fifth of its revenue from the tech giant, Bloomberg reported. The tech giant is also planning to start ditching Qualcomm, which makes about 22% of its sales from Apple, in favor of cellular modems by 2024 in one device, the report added. The move is part of a plan to replace third-partner chips inside its devices with homegrown components. It comes a few years after Apple ended its 15-year partnership with Intel (NASDAQ:INTC) in which the latter’s chips powered Apple’s laptops and desktops.