Dialog Semiconductor admitted on Monday that Apple, its top customer, could build its own power management chips for future iPhones without relying on the British-based chipmaker (via Reuters). The comments saw Dialog shares tumble as much as 19 percent, despite the firm claiming there was no risk to its existing supply deals in 2018.
Dialog said it was already in the advanced stages of working with Apple on designing `2019-type products` that could lead to commercial contracts by next March.
`Our position remains that we have seen no material change to our ongoing relationship with Apple Inc,` Chief Executive Jalal Bagherli told investors on a conference call.
However, the company acknowledged for the first time that `Apple has the resources and capability to internally design a PMIC and could potentially do so in the next few years`.A report last week claiming Apple would design its own power management chips as early as 2018 came as a serious blow for Dialog, which exclusively designs the current main power management chip for iPhone, iPad, and Apple Watch models. Apple reportedly accounted for nearly three quarters of Dialog Semiconductor`s revenue in 2016.
Dialog`s PMIC chip controls an iPhone`s battery, including charging capabilities and energy consumption. Apple`s own design will supposedly be `the most advanced in the industry`, according to Nikkei Asian Review, and could enable future iPhones to have a better balance between performance and battery consumption. Taiwanese supplier TSMC will be the exclusive manufacturer of Apple`s in-house power management chip, according to the report.
Since last week`s report, Dialog shares have lost nearly a third of their value. At one point this morning they were down 15.2 percent at 26.47 euros ($31.38), according to Reuters.
Bagherli said Apple`s feedback so far on 2019 product plans had been
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