2023-05-24 07:43:57
In its quest to manufacture components for fifth-generation networks in America, Apple decided to sign a new multibillion-dollar agreement with the American company Broadcom in the field of technology and advanced manufacturing, according to an official statement of the company.
The iPhone maker did not disclose any financial details of the agreement, but said it was part of a commitment to invest in the US economy.
Apple is Broadcom’s largest customer, accounting for regarding 20 percent of the chipmaker’s revenue in the last fiscal year, which amounted to regarding $7 billion.
Meanwhile, Qualcomm received 22 percent of its annual sales from the iPhone maker, which represents regarding $10 billion.
This renewed deal between Apple and Broadcom is an extension of a long-term supply agreement between the two companies. The iPhone maker is emphasizing the scope of the partnership at a time when politicians are focused on boosting domestic production of vital electronic components.
And the last deal, will put Apple on the way to fulfill its commitment it made in 2021 to invest $ 430 billion in the economy until 2026, and the company said that it is on the right track to achieve its goal, by directly agreeing with American suppliers, investing in data centers and enhancing capital.
In 2018, Apple allocated $350 billion to build new facilities and create 20,000 jobs, but it raised its investments to $430 billion, indicating that it greatly exceeded its promises.
For his part, Apple CEO Tim Cook said in the statement, “All Apple products are manufactured using technology designed and manufactured domestically in the United States, and we will continue to deepen our investments in the American economy because our belief in America’s future is unwavering.”
And Apple continues to bet on supporting 5G networks, as it introduced 5G technology in iPhones in 2020, and has since launched other devices that support 5G, including the seventh version of the Apple Watch and iPad Pro.
It is worth noting that the iPhone is the golden egg for Apple, as it is the largest source of profitability for Apple, as it generated more than half of its revenues of $394.3 billion last year.
The phone also helped support growth for Broadcom, which described Apple in earnings calls as a top customer in North America. The chip maker produces a common component that handles Wi-Fi and Bluetooth functionality on Apple devices.
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