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Apple reduces orders of power management chips from Dialog this year

By Cookie Monster - on 2 Jun 2018, 1:00am

Apple reduces orders of power management chips from Dialog this year

Life's tough as an Apple supplier as you might be dropped anytime from the supply chain. Dialog Semiconductor has warned its investors that revenue growth this year and 2019 will be lower due to Apple reducing its orders for its power management chips. 

In its statement to The Financial Times, Dialog revealed that Apple has ordered "30 percent" fewer chips this year compared to previous years. Apple's orders currently make up almost three-fourths of Dialog's revenue. The company is bracing itself for similar reductions next year as well.

“I would expect there would be a similar reduction [in demand for the power management chips] next year but beyond that I don’t know,” said chief executive Jalal Bagherli. “We are making a lot of new inroads with new customers.”

Dialog states that it is forced to meet Apple's technology, quality, price and volume requirements for the order this year, and will continue to develop advanced technology to meet Apple's requirements. To make up for the lost revenue from Apple, Dialog will explore business opportunties with other handset manufacturers. 

When Reuters broke the story in April 2017 about Apple building its own battery-saving chip for the iPhone, shares of Dialog fell 36%! Nikkei Asian Review followed up with a report in December 2017 that Apple's in-house power management chip could arrive as early as this year. Well, it seems likely that Apple will debut its custom designed power management chip in the upcoming iPhone models this year. 

Source: The Financial Times via 9to5Mac

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