Broadcom signs two new multi-year deals to supply Apple components
Broadcom has entered into two new, multi-year deals with Apple to supply the Cupertino tech company with wireless components and modules, Broadcom disclosed Thursday. The new deals, combined with Broadcom's 2019 Apple contract, are expected to generate $15 billion in future revenue for Broadcom.
Specifically, Broadcom said the new deals were to supply "a range of specified high-performance wireless components and modules to Apple for use in its products." The previous agreement, reached in June 2019, pertained to the supply of specified radio-frequency (RF) components and modules.
The two new contracts, along with what remains of the 2019 contract, apply to all Apple products launched over the next 3.5 years, beginning this month.
Braodcom is reportedly readying to sell its RF business unit, and Thursday's disclosure could help Broadcom underscore its value.