Apple Partnerships -- ChatGPT's Take -- September 6, 2025

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:

• 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.

• Strength: Huge financial dependency (Google’s traffic → Apple’s devices).

• 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:

• 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.

• Strength: Hardware supply chain dependency — Apple must have these chips to ship iPhones and Macs.

• 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):

• Scope: TSMC manufactures Apple’s custom silicon (A-series and M-series chips).

• Strength: Absolutely critical. Without TSMC’s advanced nodes (3nm, 2nm soon), Apple simply cannot deliver competitive iPhones, Macs, or iPads.

• Fragility: Geopolitical risk (Taiwan). Apple has been lobbying hard for TSMC to build capacity in Arizona.

 Apple - Foxconn:

• Scope: Assembly/manufacturing partner.

• Strength: Foxconn builds most iPhones — the relationship is decades deep.

• Fragility: Apple has diversified with Pegatron, Wistron, and production in India/Vietnam to avoid over-reliance.

Takeaway:

• 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).

• The Apple + Broadcom tie is important, but transitional — Apple can and probably will internalize more chip design.

• 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.