Apple Extends Broadcom Chip Deal Through 2031; Foldable iPhone Faces Cost Catch
AAPL•Apple and Broadcom extended their custom-chip partnership through 2031 to co-develop and supply wireless and connectivity components for future devices. An analyst predicts Apple’s first foldable iPhone could sell out immediately but warns high unit costs and tight production yields may pressure margins.
1. Partnership Extension Through 2031
Apple and Broadcom agreed to extend their long-standing custom-chip development and supply partnership by five years, securing collaboration through 2031. The deal covers a range of wireless and connectivity components critical for upcoming iPhones, iPads and wearable devices, ensuring supply stability and joint R&D on next-generation modem and RF solutions.
2. Foldable iPhone Demand and Production Risks
An industry analyst forecasts Apple’s anticipated foldable iPhone could sell out immediately upon release due to high consumer interest. However, the device’s complex hinge mechanism and flexible OLED panels carry elevated manufacturing costs and yield challenges that could strain gross margins and limit initial production volumes.
