13 April, 2017
Apple is developing its own iPhone power management chips and plans to stop using Dialog Semiconductor's in 2019.
LONDON, April 11 A sharp drop in shares of Apple-supplier Dialog Semiconductor dominated trading in otherwise muted European stock markets on Tuesday as a holiday-shortened week and broadly risk-off sentiment kept investors from making big bets.
As per the research note, Apple is setting up a design team to work on the power management chip at its headquarters in California as well as in Munich.
It appears that Apple is developing its own power management chips, according to a report from German private bank Bankhaus Lampe.
Engineers from Dialog have reportedly been switching over to Apple over the past year, a source said, according to Bloomberg. Dialog replaces numerous discrete power administration spares with one exceedingly incorporated gadget, empowering our users to create lighter and thinner convenient applications with higher power effectiveness bringing about longer battery life. A separate report from Barclays Research is less pessimistic about Dialog's prospects and claims that Apple is unlikely to fully cut off its relationship with the component maker. Dialog shares remained down around 16 percent on Tuesday. Dialog is reliant on Apple's custom as nearly 75 percent of its sales are to the Californian tech company.
It's interesting to see that Apple is moving down its supply chain and replacing its most important suppliers one by one. Reading, England-based Dialog gets about 74 percent of its sales from Apple.More news: Bond yields headed northward, RBI tightens rate corridor
Apple's move isn't too surprising considering the company is famous for its desire to control every aspect of its products from software, to design and hardware.
"(Dialog Semiconductor) could potentially go the same way as Imagination Technologies has recently.
Over the past dozen years, Apple suppliers CSR, PortalPlayer, Sigmatel and Wolfson have been replaced, pushing them eventually to merge with more diversified players.
RISC-V offers a number of features which companies like Apple might find attractive.
Apple sells tens of millions of iPhones every year.