Chipmaker and longtime Apple supplier Broadcom today announced that it has signed a pair of multi-year deals with Apple that will cover a range of “high-performance wireless components and modules” that are intended for use in its products.
Broadcom says the new agreements are in addition to the agreement it signed in June 2019 for RF components and modules. The newly-signed agreements will last for three-and-a-half years, beginning in January 2020.
Broadcom expects the two new deals, in concert with its existing deal with Apple, will generate future revenue of around $15 billion.
In December it was reported that Broadcom was possibly exploring a possible sale of its RF wireless chip business. Some analysts predicted Apple could be a potential buyer. Apple currently accounts for around 25% of Broadcom’s net revenue in 2018.
Broadcom’s announcement today is a positive indicator to potential suitors that they’d benefit from a strong, already established business relationship with Apple.
