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Apple will use more Broadcom chips in new iPhone

SemiMediaEdit
June 7, 2018

According to JPMorgan's report, Broadcom will provide Apple with all non-RF chips in the new iPhone, which means that each Apple phone will bring US$10 to Broadcom.

JPMorgan analyst Harlan Sur pointed out that in the next iPhone, Broadcom will maintain its share of non-RF chips. This means that Broadcom will become the sole supplier of new iPhone wireless charging, Wi-Fi, Bluetooth and GPS capabilities.

"We believe Broadcom will become the 100% non-RF chip supplier for the new generation iPhone in 2018 and provide chip support for connectivity (Wi-Fi, Bluetooth, GPS, etc.)," ​​Sur said in the report. “We saw that in the 2018 iPhone model, the cost of non-RF chips increased by 8% to 10%, and the increase in the wireless charging chip upgrade and the additional cost of GSP/wireless charging are the main factors for price increase. The market will often Ignore Broadcom’s dominant position in wireless connectivity, including Wi-Fi, GPS, Bluetooth, etc. The close cooperation with Apple will continue to make Broadcom the non-RF chip supplier for all iPhones in 2018. We expect to follow Apple's direction next year. Using Broadcom’s next-generation Bluetooth and Wi-Fi combo chips, Broadcom will gain more profits on the iPhone in 2019.”

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