@lolmei：Apple is Broadcom$Broadcom(AVGO)$ 's largest customer and accounts for approximately 20% of revenue for FY22, or about $7 billion. Yet, while the loss of Apple as a customer would definitely impact Broadcom, the impact is expected to be much lower by 2025 as other parts of Broadcom are growing much faster, decreasing the percentage of revenue derived from Apple. Also, Apple has so far been struggling with replacing Qualcomm and has already had to postpone the release of its own 5G chips a couple of times. It could very well be that the replacement for the Broadcom products will also be finalized much later than 2025, and closer to 2027, giving Broadcom even more time to diversify its revenue stream. Obviously, the acquisition of VMware would already lower the Apple percentage quite a bit. As a result, I am not overly worried by this news.Bernstein analyst Stacy Rasgonhas also been downplaying the severity of losing Apple as a customer. The analyst states that losing Apple as a customer would impact FY25 EPS by approximately 3-4% and would not turn out to be material. Also, she believes Apple might be trying to negotiate a better deal as the current supply agreement ends at the end of this year. Overall, I don't believe this is something to worry about for investors. Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.
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