Dialog shares slump 16% on Apple worries

BY  TECHENONIK 

an hour ago

Shares in Dialog Semiconductor plummeted 16% on Monday morning after the German-listed firm acknowledged that it could lose vital Apple orders.

It means Dialog has now lost around a third of its value during the past week, with the shares having also fallen sharply on Thursday amid worries that Apple could take key chip design in-house.

Reuters reported that Dialog had told investors on a call that it would not know the terms of its 2019 business with Apple for a few months to come.

Key chips

At present, Dialog supplies the all-important power management chips to Apple, used in the latter’s iPhones, iPads and watches.

The sell-off in Dialog’s shares was sparked last Thursday after the Nikkei Asian Review reported that Apple would begin designing its own chips for the iPhone as early as next year.

While giving Apple more control, the move could also enable it to reduce costs.

Last year, around three-quarters of Dialog’s sales were attributable to Apple.

Read more: Dialog shares slump 16% on Apple worries | Capital.com
https://capital.com/dialog-shares-slump-16-on-apple-worries