Broadcom has disclosed two chip-supply deals that will provide components for Apple devices to be released through the middle of 2023.
Mark Gurman for Bloomberg News:
The San Jose, California-based chipmaker said it entered into two multiyear pacts “for the supply of a range of specified high-performance wireless components and modules to Apple for use in its products.” That’s in addition to another similar agreement that Broadcom reached with Apple in 2019. The three deals could generate about $15 billion in future revenue, Broadcom added.
Broadcom put its radio frequency chip unit up for sale last year. Thursday’s disclosure lets potential acquirers know that they’re buying into a substantial business relationship with Cupertino, California-based Apple.
MacDailyNews Note: News of these Apple and Broadcom deals have affected after-hours trading during which shares of Broadcom (AVG) were up 2.06% while shares of rival chip-supplier Skyworks Solutions (SWKS) dipped 3.57%.
Actually, I am quite disappointed that the deal does not appear to include purchase of Broadcom’s BCM47748 GPS chipset. By all accounts this chipset is orders of magnitude superior to the gps signal processing embedded in Apple’s mobile devices. Better precision with less power. Sounds like a no-brainer, but apparently Apple doesn’t care that much about improving GPS location capability within its mobile device. Lost opportunity. Very, very sad.