Apple contracts Broadcom for $15 billion in wireless components

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A new filing with SEC reveals that Apple has entered two separate contracts with wireless component maker Broadcom for $15 billion in wireless components.

According to the filing, Broadcom will provide specified RF components and modules to Apple to be used in hardware devices over the next three and a half years.

Apple currently uses Broadcom components on the iPhone 11 lineup for Wi-Fi and Bluetooth connectivity. As per analyst Patrick Moorhead or Moor insights, the filing suggests future iPhones could be supplied with Broadcom components for LTE connectivity – but Broadcom components for 5G connectivity aren’t completely off the table. Remember

that Apple acquired Intel’s modem division.

Following the news of the 2020 SOW (Statement of Work), Broadcom’s stock price rose about 3% in after-hours trading with a peak of $330.10 after closing on Thursday at $319.65.

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