Apple's iPhone 17 Series to Feature In-House Wi-Fi 7 Chip, Potentially Impacting Broadcom

Apple's iPhone 17 Series to Feature In-House Wi-Fi 7 Chip, Potentially Impacting BroadcomSupply chain analyst Jeff Pu recently revealed that Apple plans to equip all four models of its upcoming iPhone 17 series the iPhone 17, iPhone 17 Air, iPhone 17 Pro, and iPhone 17 Pro Max with its own in-house developed Wi-Fi 7 chip. This news has drawn significant industry attention, highlighting Apple's deepening commitment to chip design and the potential impact on existing supplier Broadcom

Apple's iPhone 17 Series to Feature In-House Wi-Fi 7 Chip, Potentially Impacting Broadcom

Supply chain analyst Jeff Pu recently revealed that Apple plans to equip all four models of its upcoming iPhone 17 series the iPhone 17, iPhone 17 Air, iPhone 17 Pro, and iPhone 17 Pro Max with its own in-house developed Wi-Fi 7 chip. This news has drawn significant industry attention, highlighting Apple's deepening commitment to chip design and the potential impact on existing supplier Broadcom.

Pu stated that the design of Apple's Wi-Fi 7 chip was completed as early as the first half of 2024 and is expected to be integrated into the iPhone 17 series later this year. This isn't entirely unexpected; renowned analyst Ming-Chi Kuo previously predicted Apple's adoption of a self-designed Wi-Fi chip in the iPhone 17 series, replacing the components currently supplied by long-time partner Broadcom.

Apple has long adhered to a "self-reliance first" strategy in chip development, a significant characteristic of its approach to hardware. By independently developing key core chips, Apple gains better control over product quality, cost, and performance, establishing a unique technological barrier to entry. This strategy is evident across various Apple product lines, particularly in its core computing chips.

For instance, in the mobile device sector, Apple's A-series chips have undergone years of iteration and consistently maintain a leading position in the industry, providing powerful performance for products like the iPhone. In the computer realm, Apple's M-series chips have revitalized the Mac line, delivering significant performance improvements and garnering widespread market recognition. Furthermore, Apple is actively developing in-house chips for wireless connectivity, wearables, and spatial computing, encompassing the W-series and H-series wireless chips, S-series wearable chips, and the R1 chip for the Vision Pro. The success of these in-house chips further solidifies Apple's competitive advantage in the chip market and enhances its product differentiation.

Apple's decision to develop its own Wi-Fi 7 chip represents a considerable blow to Broadcom, a major supplier. Public information indicates that Apple is one of Broadcom's most important clients, contributing approximately 20% of its revenue in fiscal years 2022 and 2023. As Apple progressively integrates self-designed chips into its primary product lines, Broadcom's revenue will inevitably be affected. While Broadcom possesses a diverse customer base, losing Apple, a heavyweight client, will undoubtedly have a negative impact on its financial standing and future development, forcing it to adjust its product strategy and market positioning to counter the competitive pressure from Apple's in-house chips.

From Apple's perspective, the self-designed Wi-Fi 7 chip not only enhances product performance and user experience but also allows for more effective cost control. By developing its own chips, Apple reduces over-reliance on suppliers and mitigates supply chain risks. Moreover, in-house chips integrate better with Apple's ecosystem, enabling deep software and hardware optimization for a smoother, more stable user experience.

Apple's persistence in developing its own chips reflects its strategic focus on technological innovation and control over its supply chain. In the future, Apple is likely to increase its investment in in-house chip development and apply this strategy to more product lines, solidifying its leadership in the technology sector. This also signifies that other chip suppliers will face continuous pressure and challenges. They must continually enhance their technological capabilities and product competitiveness to survive in the increasingly intense market competition.

In conclusion, the news of Apple's upcoming adoption of a self-designed Wi-Fi 7 chip in the iPhone 17 series marks a significant step in its in-house chip development journey and signals potential significant changes in the future chip landscape of the smartphone industry. This move will have profound implications for Apple itself, Broadcom, and the entire chip industry. We will continue to monitor Apple's progress in chip development and the subsequent impact on the industry.