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Apple to ditch Broadcom, Qualcomm for in-house chip development...Is this the purpose of the IDCC stock buyback for Apple to buyout IDCC?
Apple to ditch Broadcom, Qualcomm for in-house chip development: Reports
Yahoo Finance's Dan Howley explains why Apple is looking to move its chips and displays in-house.

Apple to ditch Broadcom, Qualcomm for in-house chip development: Reports

Video Transcript
RACHELLE AKUFFO: Apple hinting at its all-in-one future with recent moves to bring more manufacturing in-house. Now the tech giant developing its own versions of everything from wireless chips to displays. The move is likely part of CEO Tim Cook's plans for the company's future. Yahoo Finance's Dan Howley has more. And Dan, we've been following this. We were just talking about the chips yesterday.

DAN HOWLEY: That's right, Rachelle. This is, yeah, just on the back of the announcement or the news that Apple is likely going to ditch Broadcom, as well as Qualcomm, in the upcoming iPhones that they'll launch there, now reportedly looking at building out their own display technologies. Now, it's important to note that they're not going to actually build the displays. They're going to be designing them.

But this is still a huge blow to the likes of LG and Samsung, which currently do all of that for Apple. What this really means is that as you said, they're trying to bring more and more of the design process for their technologies underneath their own roof. We already have the chips that they offer, the M1, M2, M1 Pro, and One Max. Those you can find in the Mac and MacBook line of products. They already offer their A15 chips that we have in the current iPhones.

The A line of chips has been going on for some time. They're looking at those modems. They're looking at those Bluetooth chips. And now it's the displays. The displays in particular, however, are expected to start on the Apple Watch. And that's pretty much a smaller platform for them to get started on. According to this report, they're going to be using a type of technology called micro-LED. They currently use OLED technology on both their smartwatches and their smartphones. That's really just a great kind of tech overall. My TV's got it, so it's awesome.

Basically means better colors, as well as deeper blacks. LCD technology, the kind that you have or regular LED technology that you have on your average laptop display, is not as good as far as colors go, but is brighter. Now this micro-LED technology kind of takes the best of both worlds. It's bright and offers those great colors. So it'll be interesting to see what this looks like on a watch and a smartphone down the line.

But as I said, this is all part of that strategy of trying to bring everything in-house. Tim Cook is the architect of their supply chain, as we see it now. He started laying that out prior to being CEO. And so we can expect him to continue to make moves like this. It just depends on where else we could see it.

RACHELLE AKUFFO: Absolutely. We'll be keeping an eye on that. A big thanks, Dan Howley there reporting for us.