A move by Apple to develop its own Wi-Fi and Bluetooth chip, codenamed Proxima, could mark a pivotal shift in its smart home strategy. The Apple TV and HomePod mini will be the first testing grounds for the new hardware. According to a recent Bloomberg report, the transition from Broadcom components will begin in 2025, potentially reshaping how Apple’s devices interact within the home ecosystem.
According to Bloomberg, the new chip has been developed for several years and represents Apple’s latest step toward vertical integration. The component will be manufactured by Taiwan Semiconductor Manufacturing Company (TSMC), following the pattern established with Apple’s other in-house chips, such as the M- and A-series processors.
Reports suggest that the initial rollout of the Proxima chip will begin with updates to the Apple TV set-top box and HomePod mini smart speaker in 2025. This careful approach suggests Apple is taking a measured stance in implementing the new technology, testing it first in-home devices before expanding to more critical products like iPhones later in the same year, with iPads and Macs following by 2026.
Smart home implications
The timing of the transition is particularly significant for Apple’s smart home ambitions. The company is reportedly planning a “significant smart home push” next year, including developing a new AI-powered home hub device that can be wall- or surface-mounted.
The integration of the Proxima chip into these devices could offer several advantages:
- Enhanced device synchronisation with potentially faster data transfer between Apple smart home products,
- More efficient power consumption through tighter integration with other Apple components,
- Greater control over the wireless technology stack, enabling custom features for the Apple ecosystem,
- Support for the Wi-Fi 6E standard, promising better bandwidth and increased speeds.
Risks and challenges
However, the transition has risks. As Bloomberg notes, Broadcom is a market leader in wireless components, and Apple’s first-generation Wi-Fi chip may face challenges matching the established competitor’s hardware capabilities. Wi-Fi and Bluetooth components are crucial for device connectivity, handling everything from network connections to peripheral pairing, and reliability is essential for customer satisfaction.
Market impact
The announcement has already had financial implications, with Bloomberg reporting that Broadcom’s shares fell as much as 3.9% following the news. The reaction is understandable, given that Apple accounts for approximately 20% of Broadcom’s revenue. However, the relationship between the two companies isn’t ending entirely – Broadcom will continue to provide radio frequency filters for modems and collaborate on next-generation cloud server chip development, as reported by The Information.
Future ecosystem integration
Looking beyond the initial implementation, Apple’s development of Proxima is part of a broader strategy to create an end-to-end wireless approach. It could pave the way for new device formats, including thinner iPhones and more wearable technology. The company is also reportedly developing its stand-alone security camera that could integrate with the new wireless architecture.
The move aligns with Apple’s more significant trend of bringing critical components in-house. Proxima follows the success of its M-series chips for Macs and the company’s ongoing development of custom modems to replace Qualcomm components. This strategy has historically allowed Apple to control the entirity of its products’ components.
As 2025 approaches, the tech industry will watch closely to see if Apple’s gamble on in-house wireless technology pays off. The success of the Proxima chip could not only influence the future of Apple’s product line but also signal a broader shift in how tech companies approach component development in the smart home space and beyond.
See also: Apple’s Vision Pro will launch with over 600 apps built for it
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