Shares of Dialog Semiconductor plunged as much as 23% today after the company acknowledged that Apple could develop its own battery-saving chips for iPhone.
The stock has lost half its value since April on investor concern that Apple is working to build its own power chips, reports Reuters. More than half of the company's revenue is estimated to come from supplying Apple with power management integrated circuits.
“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 chipmaker conceded, "Apple has the resources and capability to internally design a PMIC and could potentially do so in the next few years."
Dialog says there is no risk to supply deals in 2018 and notes that the company is working with Apple on designing "2019-type products" that could lead to new contracts by March.
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The stock has lost half its value since April on investor concern that Apple is working to build its own power chips, reports Reuters. More than half of the company's revenue is estimated to come from supplying Apple with power management integrated circuits.
“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 chipmaker conceded, "Apple has the resources and capability to internally design a PMIC and could potentially do so in the next few years."
Dialog says there is no risk to supply deals in 2018 and notes that the company is working with Apple on designing "2019-type products" that could lead to new contracts by March.
Read More