You may be wondering what the big deal is, so allow me to explain.
One way that semiconductor manufacturers have been able to reduce the cost of electronic devices over the years is by adding functions to their chips. If a single chip can be made to take over several necessary chores rather than doing just one, it isn't hard to imagine that the cost of building an electronic gadget drops.
Manufacturers of chips for cell phones have been playing this game lately. Texas Instruments
So, what are the advantages of a single chip over using several chips to do the same job?
Well, as mentioned above, lower cost is one advantage. Smartphones should be available at much lower price points once manufacturers introduce models based on the new Broadcom chip. Also, a reduction in the number of chips means phones can be more compact and will use less power.
We don't know yet what kinds of limitations the use of this chip will place on OEMs (companies like Nokia