Apple cuts smartphone power chip orders from Dialog Semiconductor
FRANKFURT (Reuters) – Dialog Semiconductor mentioned Apple now deliberate to supply the principle energy administration chips (PMICs) for one among its three new iPhone fashions from two suppliers as a substitute of simply from the German chipmaker.
That signifies that Apple will order 30 % fewer of the chips from Dialog this yr than it had initially anticipated, Dialog mentioned in an announcement on Thursday.
The information despatched its shares 3.9 % decrease in late Frankfurt commerce. Dialog’s inventory has misplaced greater than half of its worth over the previous yr on investor issues that Apple is working by itself battery-saving chips for iPhones.
Analysts reckon Dialog derives greater than half its income from supplying Apple with PMICs.
The diminished order quantity for the PMICs will shave 5 % off the chipmaker’s 2018 revenues, however Dialog mentioned it nonetheless anticipated its 2018 revenues to develop year-on-year.
The affect on 2019 revenues is prone to be comparable, Chief Government Jalal Bagherli informed analysts on a convention name.
He mentioned Apple had not supplied a purpose for the change in its sourcing of chips.
“If you concentrate on the truth that we’re certified for all three telephones, meaning there isn’t any performance-related subject. It is likely to be an announcement of intent to scale back threat on having one provider and have another supply,” he mentioned.
He additionally mentioned Apple had not informed him who the second, new provider of the principle PMICs was however mentioned he noticed it as very doubtless that it was an in-house supply at Apple.
Apple didn’t change the projected order quantity for the opposite energy administration chip that Dialog is supplying for the brand new iPhone fashions – the sub-PMIC – nor for all different PMICs, together with these for tablets, wearables and notebooks.
Dialog mentioned it will proceed to discover new mixed-signal alternatives outdoors of energy administration for future Apple merchandise.
Reporting by Maria Sheahan; Modifying by Adrian Croft and Alexandra Hudson