Avgo Apple Agreement

The administrative submission was brief and did not contain information on the monetary value of the agreement or the quantity of product to be supplied. Broadcom wrote that « Apple intends, but is not necessary, to procure all of its requirements for [Broadcom`s] RF-Front-End components and modules provided that [Broadcom] is able to meet certain development, delivery and quality obligations. » The company stated that Broadcom (Ticker: AVGO) would supply powerful wireless components to Apple (AAPL) under two multi-year « work contracts. » Broadcom said the deals could generate about $15 billion in revenue for the company over time. In January, AVGO announced that in addition to its current supply contract, AVGO has entered into two further agreements to supply high-performance communication chips for Apple`s future products over the next 3.5 years. During the fourth quarter, the two new contracts were entered into with revenues. AVGO increased fourth-quarter revenue by 10.8% to $6.4 billion. « Some of Broadcom Inc.`s subsidiaries have two separate multi-year employment contracts (the « 2020 SOWs »). Both are intended to supply Apple with a number of high-performance wireless components and modules specified for use in its products, » Broadcom said in a statement today. The agreement, which came into effect yesterday, is a two-year contract under which Broadcom will supply some high-frequency (RF) parts to Apple for use in devices across its product range – including iPads, iPhones and Apple Watches. The announcement of the sale by Broadcom Inc (NASDAQ:AVGO) of two separate multi-year contracts, « 2020 SOWS, » with Apple (AAPL) gives a boost to the semiconductor group`s shares this morning. These agreements will provide wireless components to the iPhone manufacturer and could bring in up to $15 billion to the chip specialist. At the last audit, AVGO was 3.5% on trade at $330.90. (Reuters) – Chip maker Broadcom Inc AVGO.

O said Thursday that it has two multi-year contracts with Apple Inc. AAPL. O for the supply of wireless components used in its products. Broadcom said the two agreements announced today are in addition to an agreement already reached with the tech giant and do not influence it. The previous agreement, written in June last year, refers to some high-frequency modules used on the latest iPhone. AVGO shares are currently at an all-time high and have seen an impressive bull run in the second half of last year, following the $10 billion acquisition of cybersecurity firm Symantec. The « 2020 SOWs » agreements complement existing ones for the supply of high-frequency components and modules to the iPhone manufacturer and could generate broadcom revenue of up to $15 billion.

Cette entrée a été publiée dans Non classé. Vous pouvez la mettre en favoris avec ce permalien.

Les commentaires sont fermés.