Published: Wed, December 06, 2017
Markets | By Josh Butler

Dialog says not losing Apple power chip business in 2018

Dialog says not losing Apple power chip business in 2018

A Financial Times report today confirms the rumor: "Apple supplier Dialog Semiconductor slumped again on Monday after the Anglo-German group said it recognized its largest customer could move design for one of its chips in-house 'in the next few years.' As noted in the chart below has fallen further to 25.84 Euros (will fluctuate)".

Last week, a separate report by The Nikkei Business Daily claimed that Apple would make about half the iPhone's power-management chips starting next year, with another source saying this could be delayed to 2019. However, Dialog revealed that it had received a special dispensation from Apple to mention it.

The Reading-headquartered company admitted for the first time that Apple has the "resources and capability" to design its own power management chips, sending shares down by 20pc on Monday.

Dialog said it had no information to suggest Apple was getting ready to start making its own chips that soon.

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Another company, Imagination Technologies, saw its stock drop more than 70% in April, after Apple said it was planning to stop licensing the firm's technology in about two years.

But investors have been spooked by reports in recent months that the U.S. tech giant has been poaching staff from Dialog.

The shares have lost nearly half their value since March.

In the past, Apple has barred semiconductor suppliers from revealing their supply relationships. This has meant companies including Arm Holdings, Imagination, Laird and Dialog have had to talk cryptically about the impact of "popular recently launched phones" in their financial statements. "Dialog management is aware that they need, more than ever, to deliver a chip that is competitive on features, price and timing", he said.

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