#Dialog attempts to reassure on #Apple business as share price falls further

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Although Dialog expects to remain Apple's main supplier of PMIC designs, the company recognises that Apple has the resources and capability to internally design a PMIC and could potentially do so in the next few years, the company states in an update.

On November 30th Patently Apple posted a report titled "Rumor of Apple Developing its own Power Management Chip Drops Dialog Semiconductor's Stock price in Frankfurt".

Dialog Semiconductor recorded 2017 third-quarter revenue of $363 million, a record for the company. The company is believed to derive the majority of its income from Apple.

The Nikkei Asian Review reported last weekthat Apple could start using its own power management chips as early as next year.

Investors have become wary of businesses that rely too much on Apple, which has eliminated several of the small suppliers during the past.


Dialog said there was no risk to its existing supply deals in 2018 and it was in the advanced stages of working with Apple on designing "2019-type products" that could lead to commercial contracts by next March.

The technology giant based in the US said this past April it was planning to replace its supplier of graphics chips Imagination Technologies sending that stock down 70% in one session.

Dialog Semiconductor is finding out what happens when you put most of your eggs (or apples, perhaps) in one basket. Dialog, which has previously declined to name Apple, referring to it only obliquely as its "largest customer" or its "main business", said it had received a special dispensation from Apple to mention it.

In mid-morning European trade, shares in the Anglo-German firm were more than 18 percent lower.

The company said that it should have a better idea of future plans by March of next year. Dialog stock has lost more than 40% of its value since April when an analyst warned that Apple was working on its own battery-saving chip.

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