Broadcom, a San Jose, California-based company, is a major chip supplier for Apple"s devices including the iPad, iPhone, and the Apple Watch. The two companies have now entered into multiple new agreements that will see Broadcom provide components for Apple"s devices released through the middle of 2023.
Broadcom revealed that it had entered into two multi-year pacts with the California giant "for the supply of a range of specified high-performance wireless components and modules to Apple for use in its products." Though Apple tends to enter into long-term agreements with its suppliers, the Cupertino firm has started tapping into its own manufacturing capabilities. Case in point, Apple was reported to be clandestinely working on satellite technology a month ago.
According to the San Jose-based manufacturer, the new agreements between the two companies are among the three, multiyear deals that could potentially lead to $15 billion in future revenue. This is a signal that any potential buyers for Broadcom"s technology will buying into a solid business relationship with Apple.
Source: Bloomberg