Apple may need to look for another Wi-Fi chip supplier, as DigiTimes reports Apple supplier Broadcom is planning to phase out its Wi-Fi chip business in an effort to streamline its workforce and product lines.
Broadcom has moved to significantly reduce resources allocated to its Wi-Fi chip business, which yields relatively low gross margins compared to other product lines due to fierce price competition in the market for mass-market applications such as notebooks, tablets, TVs and smartphones, said the sources.
The move is said to be a part of a larger strategy by the chip maker, following its recent acquisition by Avago Technologies, to allocate more resources for research and development in the fiber-optic and server sectors.
The report indicate companies such as MediaTek, Realtek Semiconductor and RDA Microelectronics have already received a number of short lead-time orders from Broadcom’s customers in the Wi-Fi chip sector. it isn’t known if these customers include Apple.
It has yet to be seen just what effect such a move by Broadcom might have on Apple, who is currently preparing product refreshes for its mobile and desktop lineups. Apple uses the company’s chips in a large amount of its products, including its iOS devices and Apple Watch, as well as its iMac and MacBook lines.
