Apple Won't Be Developing Wi-Fi Chip For Now, Says Analyst — Making This Chipmaker 'Biggest Winner

Apple Inc. AAPL has reportedly halted the production of its in-house Wi-Fi chip for a while and Broadcom Inc. AVGO will receive “the best end” of this development. 

What Happened: Investors shouldn’t be worried about Apple’s in-house Wi-Fi chip affecting Broadcom’s business, according to Ming-Chi Kuo, a notable analyst at TF International Securities

See Also: How To Buy Apple (AAPL) Shares

Kuo said that Broadcom would be the “leading beneficiary” from the 2023 iPhone 15’s upgrade to Wi-Fi 6E since Apple has halted the development of its in-house solo chip, citing his latest semiconductor industry survey. 

He also noted that Apple and its rivals would start adopting Wi-Fi 6E/7 chips with higher ASP in the next couple of years. This trend will encourage the rise of Broadcom as the “biggest winner.”

Apple watcher and prominent tech journalist Mark Gurman reiterated that the Tim Cook-led company hasn’t stopped working on a combo chip, which combines cellular model, Wi-Fi and Bluetooth capabilities into a single component. 

Why It’s Important: Earlier this month, it was reported that Apple is planning to ditch Broadcom and Qualcomm Inc. QCOM as suppliers. 

Broadcom supplies the Cupertino-based tech giant with a component that handles Wi-Fi and Bluetooth functions on its hardware products. Apple is now reportedly developing a combo chip to replace this component by 2025

Read Next: Apple Likely To ‘Cancel Or Postpone’ Mass Production Of iPhone SE4, Says Analyst — Global Recession Fears Hampering Plans?

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