Apple wants to make its own modem chip next year | Technique

It was already known that Apple is developing its own 5G modem, and therefore wants to say goodbye to the chip company Qualcomm as a supplier. But by including WiFi and Bluetooth in the same chip, the iPhone manufacturer can also bypass Broadcom as a supplier.

Broadcom shares fell about 5 percent on Wall Street on the report. Broadcom now derives a fifth of its revenue, or about $7 billion, from Apple, though the chipmaker has never said so many words and refers to Apple as its “major customer in North America.” For Qualcomm, Apple accounts for 22 percent of sales, or about $10 billion. But Qualcomm has been warning for years that Apple might give up on being a customer.

Earlier, Apple started making its own chips for its computers and no longer buys these processors from Intel. That cost the chip maker a significant chunk of its sales. By developing its own chips, Apple can become less dependent on the pace of development of other companies. It also maintains more control over costs.

Earlier on Monday, it was also announced that Apple is seeing a senior manager in charge of the Services branch’s furlough. Peter Stern was seen as a possible future “Senior Vice President”. A select group of directors under Director Tim Cook, Chief Financial Officer Luca Maestri and Chief Operating Officer Jeff Williams hold the title. Stern’s position would be divided among several other directors.

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