Broadcom Apple Supply Agreement

by lobo September 12, 2021  

The San Jose, California-based chipmaker said it has entered into two multi-year agreements “for the supply to Apple of a number of high-performance wireless components and modules specified for use in its products.” That`s in addition to another similar deal Broadcom struck with Apple in 2019. The three deals could generate revenue of about $US 15 billion in the future, Broadcom added. According to a Broadcom 8K filing, the two statements of work for 2020 and an earlier agreement for 2019 will cover Apple products that will be put on the market during the three-and-a-half-year period from January 2020, either June or July 2023. Based on Apple`s standard release cadence, this would include the first three generations of 5G iPhones and between two and four generations of upcoming iPads. Together, the agreements all cover broadcom`s “supply of a number of specified high-performance wireless wireless components and modules,” although the various elements are not listed. In addition, this type of agreement makes the potential sale of Broadcom more attractive. Given that the price of Broadcom RF`s entire business is estimated at $10 billion, this deal could easily tie into a deal apple can still make. This expanded partnership could be a bridge to an agreement – or perhaps it is just a supplier agreement, which is quite possible. Broadcom said it has entered into long-term contracts with Apple to supply Silicon Valley smartphone titans with a wide range of “wireless components and modules” by 2023, giving it guaranteed spots in Apple`s products for years to come. .

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