Dialog Shares Continue to Fall After Company Admits Apple Could Design Own iPhone Battery Chips

Discussion in 'iOS Blog Discussion' started by MacRumors, Dec 4, 2017.

  1. MacRumors macrumors bot


    Apr 12, 2001

    Dialog Semiconductor admitted on Monday that Apple, its top customer, could build its own power management chips for future iPhones without relying on the British-based chipmaker (via Reuters). The comments saw Dialog shares tumble as much as 19 percent, despite the firm claiming there was no risk to its existing supply deals in 2018.

    Dialog said it was already in the advanced stages of working with Apple on designing "2019-type products" that could lead to commercial contracts by next March.

    A report last week claiming Apple would design its own power management chips as early as 2018 came as a serious blow for Dialog, which exclusively designs the current main power management chip for iPhone, iPad, and Apple Watch models. Apple reportedly accounted for nearly three quarters of Dialog Semiconductor's revenue in 2016.

    Dialog's PMIC chip controls an iPhone's battery, including charging capabilities and energy consumption. Apple's own design will supposedly be "the most advanced in the industry", according to Nikkei Asian Review, and could enable future iPhones to have a better balance between performance and battery consumption. Taiwanese supplier TSMC will be the exclusive manufacturer of Apple's in-house power management chip, according to the report.

    Since last week's report, Dialog shares have lost nearly a third of their value. At one point this morning they were down 15.2 percent at 26.47 euros ($31.38), according to Reuters.
    Dialog emphasized that it had no reason to believe its 2018 business with Apple would be affected if Apple chose to design its own chips, but acknowledged that it would need to meet the company's "technology, quality, price, and volume expectations" if it wanted to remain a key supplier.

    Dialog Semiconductor may turn out to be the second large British company to lose major business from Apple with the next couple of years. In April, Imagination Technologies shares plunged after Apple informed the firm it plans to stop using its PowerVR graphics technology in its devices by mid-2019.

    Apple looks on course to start designing several other components in-house in the next few years, potentially including ARM-based Mac processors and iPhone modems.

    Article Link: Dialog Shares Continue to Fall After Company Admits Apple Could Design Own iPhone Battery Chips
  2. pmas76 macrumors member

    Jul 28, 2011
    ...and that my friends, is why it’s never a good idea to put all your eggs in one basket...
  3. Exile714 macrumors 6502a

    Jan 14, 2015
    Fast charging, induction charging, true wireless charging...

    The future of smartphone batteries is charging speed and convenience. If the performance of the 8/X line in that regard is an indication, I can see why Apple might consider bringing this tech in-house.
  4. PickUrPoison macrumors 68040

    Sep 12, 2017
    Sunnyvale, CA
    Not so much charging speed, more to optimize the discharge rate. Smarter power management to reduce current draw, for a longer lasting iPhone at any given battery capacity.

    Given the capabilities of the in-house team, I think Apple just doesn’t see any reason to buy this from a third party anymore.
  5. Avieshek Suspended


    Dec 7, 2013
    Dash-charge, Super VOOC Charge...

    And Apple? Ummhmm.. So, it seems.
  6. SoApple macrumors regular

    Sep 21, 2012
    Why would you admit that?
    It’s like if Apple admitted that iPhone 8 demand was nonexistant.
  7. bandrews macrumors 6502a

    Jul 18, 2008
    Unfortunately for a lot of suppliers, a contract with Apple is like having one mother of a big basket and lots of tiny ones. No matter how many small baskets you’ve got, you’re always going to feel the pinch if Apple wants to take its basket away.
  8. AmazingRobie macrumors 6502


    Jun 10, 2009
    If Apple produces all of the components in their products, who will they blame when something fails and theres a recall...thats right. This is a non issue.
    Sometimes just because you can do something all by yourself does not mean that its the smartest idea.
  9. mabhatter macrumors 6502a

    Jan 3, 2009
    It’s the “Walmart problem”. You need the exposure and the unit sales. But then they consume more and more of your resources on their products... then dump you because you’re not “innovative” anymore. You never really made good profits off them because they micromanage and penny pinch your process... “your” process becomes “their” process until they take it away.

    I expect to see a bunch of their employees moving to California soon.
  10. kdarling macrumors P6


    Jun 9, 2007
    First university coding class = 47 years ago
    Wait until Apple designs its own baseband chip and dumps Intel.

    Never a good idea to get in bed with Apple, unless you only care about short term gain. Apple does not care about their effect on other companies and their employees. It's not in their DNA.

    Reminds me. Remember how Apple bought AuthenTec, the fingerprint sensor company that everyone in the industry had been sharing for years? Just to keep the faster sensor exclusive?

    Wonder what happens to all those people now that Apple is going to concentrate on FaceId instead.
  11. macs4nw macrumors 601


    Some of my earlier thoughts on that subject.
  12. scrapesleon macrumors 6502a


    Mar 30, 2017
    haha you start selling by your company to Apple save your loss
  13. Will.O.Bie macrumors 6502


    Aug 29, 2016
    Having Apple as your "major player" in your business is not very smart business. I understand the impact they have in your company and that's great and all but, they should have seen this coming eventually. I'm sure they have a contingency plan to at least stay in business, otherwise, another company closing down or being bought. I've read so many companies going under because they fully invested everything in Apple, just not good business IMO.
  14. Mike MA macrumors 68000

    Mike MA

    Sep 21, 2012
    Well, Apple is their largest customer for ONE of their products..what’s wrong there?
  15. szw-mapple fan macrumors 65816

    szw-mapple fan

    Jul 28, 2012
    You’re damned if you do, you’re damned if you don’t. If they didn’t have Apple as their customer, they would never had years of high revenue. On the other hand, they would also not be experiencing the inevitable crash ahead.
  16. techwhiz macrumors 6502a

    Feb 22, 2010
    Northern Ca.

    Walmart, Home Depot, Apple, Costco.........
  17. jimthing macrumors 65816


    Apr 6, 2011
    London, UK (Europe, Earth, Space)
    Why did Apple make this obviously known via Nikkei, BEFORE they're actually doing it?

    Why not just wait until you're ready to make the switch to in house, and THEN advise the world at that time?

    Just interested in the business decision here for the advanced warning.

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16 December 4, 2017