Renowned analyst Ming-Chi Kuo stated that Apple plans to launch its own Wi-Fi chips next year to reduce reliance on Broadcom. This news could have a significant impact on Broadcom, leading to a 5% drop in its stock price. Apple's stock also fell by 1.6%. It is expected that Apple will use these chips when launching new products in the second half of 2025, with nearly all products adopting internal Wi-Fi chips within three years. Apple's fourth fiscal quarter results showed a total sales increase of 6.1% year-on-year, with earnings per share of $1.64, exceeding analyst expectations
According to Zhitong Finance APP, renowned Apple analyst Ming-Chi Kuo stated on Thursday that Apple (AAPL.US) may reduce its reliance on Broadcom (AVGO.US) Wi-Fi chips next year and launch its own processors. This news could be significant for Broadcom, as a large portion of the company's revenue comes from Apple.
Broadcom's stock fell by 5% at one point, while Apple's stock dropped by 1.6%, with both closing down 3.89% and 1.82% respectively yesterday.
Kuo wrote on social media platform X: "In the new products in the second half of 2025 (such as the iPhone 17), Apple plans to use its own Wi-Fi chips, which will be manufactured using TSMC's N7 process and support the latest Wi-Fi 7 specifications." Apple expects that almost all products will adopt internal Wi-Fi chips within three years. This move will reduce costs and enhance Apple's ecosystem integration advantages."
Apple has been working on developing internal Wi-Fi chips for years but has encountered technical obstacles during the research and development process. Last year, Kuo indicated that Apple had paused the project for "a period of time" and decided to prioritize its own 3-nanometer Apple chips.
Apple and Broadcom did not immediately respond to requests for comment.
Apple announced its fourth fiscal quarter results after the market closed on Thursday Eastern Time. Total sales increased by 6.1% year-on-year to $94.9 billion, slightly above the average expectation of $94.4 billion. Apple reported earnings per share of $0.97, but excluding one-time expenses related to the European General Court ruling, the adjusted earnings per share should be $1.64, exceeding analysts' expectations of $1.60