Early in 2023, it was announced that Apple (NASDAQ: AAPL) is working on designing its own WiFi and Bluetooth chips for its devices. The chips Apple wants to replace are supposedly those from silicon design powerhouse Broadcom (NASDAQ: AVGO).

Reports further suggest that Apple might be able to begin cutting Broadcom out of the mix by 2025. It's certainly a cause for concern for Broadcom shareholders, as Jose Najarro and I discussed shortly after the news report. But further review shows that Apple's design efforts in wireless communications chips could present a major challenge, because Broadcom has quite the competitive edge in that department.

It's easy to argue that Apple is the most successful products company around. Its custom mobile-processor designs (which it licenses from ARM Holdings and adapts to its needs) are a big reason for that success. The iPhone, MacBook, and other products boast best-in-class performance and are differentiated from competing devices.

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Source Fool.com