Thread by @anshelsag

.@Apple's announcement with @Broadcom serves multiple purposes, it builds a stronger relationship with an existing trusted supplier and it also helps strengthen Apple's US investment story, which will help it politically, especially leveraging #5G
apple.com/newsroom/2023/…

Broadcom will build RF front-end components for Apple, in a multi-year multi-million dollar deal. This could cut out companies like @skyworksinc and @QorvoInc out of future RF front-end deals or significantly reduce their share since Apple likes to have supplier diversity.

Broadcom has long been a supplier to Apple for RF front-end components, even before Avago acquired Broadcom and went by it's old name. This partnership is actually quite established and it is unclear whether this release is a significant expansion of that relationship or not.

The prominence of 5G as part of this release serves two purposes, it talks about Apple as a leader in 5G and tees the company up for its own modem, which I believe Apple wants a more tightly couples product. This sets Apple up for a big announcement of its own modem, soon.

Apple will push @Qualcomm out eventually, but that was always the plan. It's unclear when this will happen exactly, but one thing is quite clear, Apple won't be doing it alone and that Broadcom is going to be a big part of enabling that RF front-end for iPhones, iPads and more.

#Apple #Broadcom $AVGO $AAPL