Kuo Ming-chi: Apple (AAPL.US) to launch its own Wi-Fi chips next year to reduce reliance on Broadcom (AVGO.US)

Noted Apple analyst Ming-Chi Kuo said on Thursday that Apple (AAPL.US) may reduce its reliance on Broadcom (AVGO.US) Wi-Fi chips next year and launch its own processors, which could be significant for Broadcom as a large portion of its revenue comes from Apple.

Broadcom fell as much as 5%, while Apple fell 1.6%, both closing down 3.89% and 1.82% respectively yesterday.

Kuo wrote on the social media platform X: "Apple plans to use its own Wi-Fi chips in its new products (e.g. iPhone 17) in the second half of 2025, which will be manufactured by TSMC's N7 process and support the latest Wi-Fi 7 specifications. Apple expects to adopt its own Wi-Fi chips in almost all products within three years. This move will lower costs and enhance Apple's ecosystem integration advantage."

Apple has been working on developing its own Wi-Fi chips for years but has faced technical hurdles. Last year, Kuo said Apple had "paused" the project "for a while" and decided to prioritize its own 3nm Apple chips.

Apple and Broadcom did not immediately respond to requests for comment.

Apple reported its fourth-quarter earnings after the market closed on Thursday. Total sales rose 6.1% year-on-year to $94.9 billion, slightly above the average estimate of $94.4 billion. Apple said EPS was 97 cents, but adjusted EPS should have been $1.64 after removing one-time expenses related to a European Court of General Justice ruling, above analysts' expectations of $1.60.