Apple to Launch Its Own Wi-Fi 7 Chip Next Year, Challenging Broadcom's Dominance

Apple to Launch Its Own Wi-Fi 7 Chip Next Year, Challenging Broadcom's DominanceApple analyst Ming-Chi Kuo predicts that at least one iPhone 17 model will be equipped with Apple's own Wi-Fi 7 chip next year. This marks a further step in Apple's strategy to rely less on Broadcom and fully transition to self-designed chips

Apple to Launch Its Own Wi-Fi 7 Chip Next Year, Challenging Broadcom's Dominance

Apple analyst Ming-Chi Kuo predicts that at least one iPhone 17 model will be equipped with Apple's own Wi-Fi 7 chip next year. This marks a further step in Apple's strategy to rely less on Broadcom and fully transition to self-designed chips. Currently, Broadcom supplies over 300 million Wi-Fi+Bluetooth chips to Apple annually, covering almost all iPhone models. However, Apple has begun to reduce its dependence on Broadcom, with plans to use self-designed Wi-Fi chips in all its products within the next three years to lower costs.

Apple's self-designed Wi-Fi 7 chip is manufactured using TSMC's 7nm process. Compared to the existing Wi-Fi 6, Wi-Fi 7 boasts a maximum transmission speed of 46Gbps, nearly five times faster. Additionally, Wi-Fi 7 supports more frequency bands, including 2.4GHz, 5GHz, and 6GHz, while Wi-Fi 6 only supports 2.4GHz and 5GHz, and Wi-Fi 6E supports 6GHz. Notably, the 6GHz band supported by Wi-Fi 7 varies depending on the region's frequency allocation. For example, the US, Korea, and Brazil have allocated the entire 6GHz band (5.925-7.125GHz) to Wi-Fi 6E and Wi-Fi 7.

Beyond the Wi-Fi 7 chip, Apple's self-designed 5G baseband chip is on the verge of commercialization. It's reported that the iPhone SE 4 in the first half of next year and the iPhone 17 Air in the second half will be equipped with Apple's own 5G baseband. Back in 2019, Apple spent $1 billion to acquire Intel's mobile baseband chip division, securing over 17,000 patents and 2,200 employees. Since then, Apple has been dedicated to developing its own 5G baseband chip to replace Qualcomm's.

Wolfe Research analyst Chris Caso released a research report stating that Apple will introduce its self-designed 5G baseband in the iPhone 17 series launching in 2025. This is expected to lead to a 35% year-on-year decrease in Apple's revenue contribution to Qualcomm in 2025 and another 35% decline in 2026.

Apple's continuous breakthroughs in chip technology signify its gradual detachment from third-party chip suppliers, giving it more control over core technologies and boosting its product performance and cost efficiency. In the long run, Apple's self-designed chip strategy will have a substantial impact on the entire mobile chip market.