Apple Announces Multi-Billion Dollar Deal with Broadcom

Apple Inc.’s (AAPL) shares are dropping 0.57% on today’s late premarket trade, while Broadcom’s (0YXG.L) one’s are easing by 0.46% after Apple Inc. announced a new multi-year, multibillion-dollar partnership with Broadcom Inc. focused on developing high-frequency components for 5G, including FBAR filters and "advanced wireless connectivity components."

The aforementioned filters are exclusively produced in some of the major manufacturing and technology centers in the United States, including Fort Collins, Colorado. "All of Apple's products are based on technology designed and manufactured in the United States, and we continue to increase our investment in the American economy," Apple CEO Tim Cook commented.

The investment is part of a commitment the company made in 2021, when it announced it would invest $430 billion in the country's economy over five years. The implications of the deal aren’t that clear and straightforward, because 5G standard development is considered to be just a complementary direction to Apple’s overall priority of making newer models of iPhones more attractive to buyers.