Broadcom (NASDAQ:AVGO) news for Friday includes a massive deal with Apple (NASDAQ:AAPL) boosting AVGO stock.
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The Broadcom news comes from a recent filing with the U.S. Securities and Exchange Commission (SEC). In this filing, the company reveals that it has two deals with Apple to provide it with components for its devices.
According to the SEC filing, the deal covers “a range of specified high-performance wireless components and modules,” that Apple will use in its products. The deals last for three and a half years and starts in January 2020.
The Broadcom news notes that these deals are in addition to a similar one made with Apple in mid-2019. That deal covers providing the tech company with specified RF components and modules for its devices.
The SEC filing notes that Broadcom is expecting to make a pretty penny off of its deals with Apple. When considering the multiple deals, the company says that it hopes for them to generate revenue of about $15 billion.
It’s possible that the deal between Broadcom and Apple is in preparation for a 5G iPhone. Apple has yet to make any official announcement about such a device. Even so, many are expecting the company to release it later this year. That would make sense as 5G wireless networks are starting to pop up in larger cities in the U.S.
AVGO stock was up 1.33% and AAPL stock was down slightly as of Friday afternoon.
As of this writing, William White did not hold a position in any of the aforementioned securities.
