Apple Wi-Fi Chip Supplier Broadcom Reportedly Scaling Back Production

Posted in Apple, Apple News on 18/03/2016 by Chris Hauk

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Apple may need to look for another Wi-Fi chip supplier, as DigiTimes reports Apple supplier Broadcom is planning to phase out its Wi-Fi chip business in an effort to streamline its workforce and product lines.

Apple Wi-Fi Chip Supplier Broadcom Reportedly Scaling Back Production

Broadcom has moved to significantly reduce resources allocated to its Wi-Fi chip business, which yields relatively low gross margins compared to other product lines due to fierce price competition in the market for mass-market applications such as notebooks, tablets, TVs and smartphones, said the sources.

The move is said to be a part of a larger strategy by the chip maker, following its recent acquisition by Avago Technologies, to allocate more resources for research and development in the fiber-optic and server sectors.

The report indicate companies such as MediaTek, Realtek Semiconductor and RDA Microelectronics have already received a number of short lead-time orders from Broadcom’s customers in the Wi-Fi chip sector. it isn’t known if these customers include Apple.

It has yet to be seen just what effect such a move by Broadcom might have on Apple, who is currently preparing product refreshes for its mobile and desktop lineups. Apple uses the company’s chips in a large amount of its products, including its iOS devices and Apple Watch, as well as its iMac and MacBook lines.


Author

Chris Hauk

MacTrast Senior Editor, and self-described "magnificent bastard," Chris Hauk owns Phoenix Rising Services and writes for everyone's favorite "bad movie" website, Big Bad Drive-In.

His first Apple product was an iPod Classic 9 years ago, and he has since added a MacBook Pro, a number of iPads, iPhones, and multiple Apple TVs to his collection.

He lives somewhere in the deep Southern part of America. Yes, he has to pump in both sunshine and the Internet.