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Broadcom is set to sell $15 billion worth of wireless connectivity components to Apple. The components will be used in products that are scheduled to be released in the next three and a half years. This is evidenced by a recent filing with the Securities and Exchange Commission. However, the write-up does not specify in any way which specific components will be involved. According to the commission's minutes, Apple entered into two separate agreements with Broadcom.

In the past, Broadcom has supplied Apple with Wi-Fi and Bluetooth chips for last year's iPhone models, for example, as revealed in the disassembly of the iPhone 11. It also included an Avago RF chip that helps the smartphone connect to wireless networks. Apple should come up with iPhones with 5G connectivity in the coming years, many sources say that the first 5G iPhones will see the light of day this year. The move presents an opportunity for a number of potential suppliers of the relevant hardware to establish new business relationships with Apple. However, it is not excluded that the mentioned agreement between Apple and Broadcom does not apply to 5G components, which was also indicated by Moor Insights analyst Patrick Moorhead.

Cupertino giant is taking steps to develop its own 5G chips. Last summer, media reported that Apple had purchased Intel's mobile data chip division for these purposes. The acquisition also included the adoption of 2200 original employees, equipment, production tools and premises. The price of the acquisition was approximately one billion dollars. However, according to available information, Apple's own 5G modem will not arrive before next year.

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Source: CNBC

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