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Broadcom Business Model

  • Diverse Innovation Heritage: The company boasts a rich history of over 50 years of innovation, originating from prominent entities like Hewlett-Packard Company, AT&T, and others.
  • Global Engineering Expertise: With a large team of semiconductor and software design engineers worldwide, the company maintains resources in key locations across the U.S., Asia, Europe, and Israel, ensuring extensive engineering expertise.
  • Strategic R&D Focus: Research and development efforts are strategically directed towards niche opportunities in target markets, leveraging an extensive portfolio of patents and intellectual property to integrate multiple technologies and develop high-performance system-on-chip solutions.
  • Semiconductor Leadership: The company specializes in complex digital and mixed-signal CMOS-based devices, as well as analog III-V based products, offering thousands of innovative solutions for various end products, ranging from enterprise networking to smartphones and alternative energy systems.
  • Differentiation Through Performance: Differentiating itself through high-performance design and integration capabilities, the company focuses on developing products for target markets where attractive margins can be earned.
  • Infrastructure Software Solutions: Offering a comprehensive portfolio of infrastructure and security software, the company enables customers to manage and secure applications across mainframe, distributed, mobile, and cloud platforms, catering to the needs of Fortune 500 companies and government agencies worldwide.
  • Hybrid Cloud Portfolio: The acquisition of VMware expands the company’s hybrid-cloud portfolio, providing enterprises with solutions to simplify their IT environments, increase business velocity, and run mission-critical workloads across private, public, and edge environments with security and resiliency.
  • Combining Technological Leadership: The company aims to merge top-tier technology leadership in both semiconductor and infrastructure software solutions.
  • Unmatched Scale: Leveraging its vast scale, the company intends to offer a comprehensive suite of infrastructure technology products.
  • Target Customers: The primary focus is on catering to leading business and government customers worldwide.
  • Common Sales and Administrative Platform: Utilizing a unified sales and administrative platform to streamline operations and enhance efficiency.
  • Acquisitions and Investments: The strategy involves responsibly financed acquisitions of category-leading businesses and technologies. Additionally, significant investments in research and development are planned to maintain product technology leadership.
  • Robust Business Model: The strategy is designed to create a robust business model that drives diversified and sustainable operating and financial results.
Broadcom generated $35.82 billion in 2023, compared to $33.2 billion in 2022 and $27.45 billion in 2021.
Broadcom is profitable as it reported $14.08 billion in net income in 2023, compared to $11.22 billion in 2022 and $6.44 billion in 2021.
In 2023, most of Broadcom’s revenue came from products, with $27.89 billion, compared to subscriptions, with $7.93 billion in revenue for the same period.
In 2023, Broadcom’s product business was the most important for the company as it generated $27.89 billion in revenue, with $8.63 billion in cost of revenue, thus resulting in a gross profit of $19.25 billion.
Broadcom’s subscription and services business is run at wide gross margins. In 2023, it generated $7.93 billion in revenue, with $636 million in cost of revenue and a gross profit of $7.56 billion.

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Broadcom Business Model

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