The transition is separate from Apple’s highly anticipated shift from Qualcomm Inc. cellular modems – details of which Bloomberg News reported last week – but the two parts will eventually work together.
Apple’s goal is to develop an end-to-end wireless approach that is tightly integrated with its other components and more energy-efficient, said the people, who asked not to be identified because the initiative has not been announced. Representatives for Cupertino, California-based Apple and Palo Alto, California-based Broadcom declined to comment.
Shares of Broadcom fell as much as 3.9 per cent to US$175.99 after Bloomberg News reported on the transition. Apple rose less than 1 per cent to US$248.53 as of 1.23pm in New York.
Apple is one of Broadcom’s biggest customers, accounting for roughly 20 per cent of revenue. Broadcom is scheduled to report its latest quarterly results after the market closes Thursday.
