ChatGPT prompt:
Is there a "stronger" alliance in the "tech" sector than the "partnership" between Apple and Google? Possibly Apple and Broadcom?
ChatGPT reply:
That’s a sharp way to frame it — because in tech, “alliances” aren’t just about who shakes hands, but about who really can’t function without the other. Let’s stack this up:
Apple - Google:
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Scope: Primarily search and advertising. Google pays Apple an estimated $18–20 billion a year to remain the default search engine on iPhones and Safari.
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Strength: Huge financial dependency (Google’s traffic → Apple’s devices).
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Fragility: Antitrust regulators (US, EU) are challenging this arrangement, and Apple has been experimenting with its own search technology. It’s a marriage of convenience, not deep integration.
Apple - Broadcom:
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Scope: Wireless components (Wi-Fi, Bluetooth, RF filters, networking chips). Apple signed a multi-billion dollar, multi-year deal with Broadcom in 2023 to supply US-made components.
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Strength: Hardware supply chain dependency — Apple must have these chips to ship iPhones and Macs.
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Fragility: Apple has a long history of vertical integration (it designs its own CPUs, GPUs, modems eventually). Broadcom is crucial today, but Apple is slowly trying to reduce reliance.
Apple - TSMC (often overlooked):
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Scope: TSMC manufactures Apple’s custom silicon (A-series and M-series chips).
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Strength: Absolutely critical. Without TSMC’s advanced nodes (3nm, 2nm soon), Apple simply cannot deliver competitive iPhones, Macs, or iPads.
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Fragility: Geopolitical risk (Taiwan). Apple has been lobbying hard for TSMC to build capacity in Arizona.
Apple - Foxconn:
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Scope: Assembly/manufacturing partner.
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Strength: Foxconn builds most iPhones — the relationship is decades deep.
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Fragility: Apple has diversified with Pegatron, Wistron, and production in India/Vietnam to avoid over-reliance.
Takeaway:
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The Apple + Google tie is financially massive, but not existential — Apple could build or license its own search, Google could survive without Apple (though at a revenue hit).
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The Apple + Broadcom tie is important, but transitional — Apple can and probably will internalize more chip design.
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The Apple + TSMC relationship is arguably the strongest and most critical in tech today — deeper than Apple + Google — because it literally determines whether Apple can ship its flagship products.
