Apple and Broadcom have signed two multi-year deals that will see the latter supply the iPhone maker with a variety of “high-performance wireless components and modules.” The two new agreements are in addition to another agreement that Broadcom had signed with Apple in June 2019 for the supply of specific RF components and modules.
The term period of the new agreements is three and a half years starting in January 2020. Broadcom is expecting to generate $15 billion in revenues thanks to the three multi-year deals with Apple.
Apart from Qualcomm, Broadcomm also supplies Apple with some important RF components, including the modules necessary for Wi-Fi and Bluetooth connectivity on all iPhones, iPads, Apple Watch, and Macs.
Broadcom has been looking to sell its radio frequency chip business since last year. The company is yet to find any potential client but such deals give investors the confidence to acquire the business as they know they will be getting a decent sum of confirmed business along with it as well.
Apple is known to sign multi-year agreements with a lot of its suppliers who provide it with key components for its devices. The company has also signed a six-year licensing and a multi-year chipset supply agreement with Qualcomm.