Why Broadcom Ltd.'s Wireless Growth Story Is Set to Slow

Broadcom (NASDAQ: AVGO) is a key chip supplier for Apple (NASDAQ: AAPL), providing the Wi-Fi/Bluetooth connectivity combination chips inside Apple's iPhones, as well as radio-frequency chips, touch-controller chips, and now -- according a recent iPhone 8 teardown report published by iFixit -- wireless charging chips as well.

Broadcom said on prior earnings calls that it expected its dollar content within this year's iPhones to grow by about 40% from the previous generation. Considering Apple is Broadcom's largest wireless chip customer, that kind of content growth will certainly fuel solid growth in the coming year in Broadcom's wireless chip business, which made up 29% of the company's third-quarter revenue.

Apple's iPhones have long employed Broadcom chips for key functions. Image source: Apple.

Source: Fool.com