Dialog Semi: 'We're still supplying Apple'

by Edgar Hayes December 5, 2017, 1:09
Dialog Semi: 'We're still supplying Apple'

The company's share price has been under pressure since reports emerged that Apple is working on its own power management chip, which could lead to less business for its usual supplier Dialog.

Shares in the British-German tech company plunged 23% on Monday, after it acknowledged that Apple - by far its biggest customer - can now develop the power management chips Dialog produces. Dialog intends to continue to closely support Apple in developing and supplying sophisticated next generation power management and mixed signal technology for use in Apple's products.

Its chief executive said it would still supply chips for to Apple in 2018, but it couldn't be certain about its 2019 deal with the firm for another few months.

"Apple is obviously not helping Dialog to win this argument with investors".

Semiconductor suppliers are typically barred by Apple from revealing their supply relationships.

Dialog said that it did not expect Apple to start designing its own chips next year, contradicting a report published on November 30 by Nikkei Asian Review.

A source with Apple was quoted by the Nikkei business daily a week ago that said Apple would make approximately 50% of the power management chips for the iPhone in 2018, with one other source saying it might be delayed until 2019.

It is working with Apple on plans for 2019 products, and will have a better idea about its future contracts with Apple by March, the company added. Imagination was subsequently sold off in two separate deals.

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

Dialog usually doesn't name business partners when talking to investors, referring to Apple as its "largest customer" or "main business". He said Dialog had already begun sharing chip designs for 2019's iPhone with Apple.


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