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#Dialog attempts to reassure on #Apple business as share price falls further

#Dialog attempts to reassure on #Apple business as share price falls further

At present, Dialog is Apple's sole supplier for power management chips for the iPhone, iPad and Apple Watch.

The Nikkei business daily last week quoted one source as saying Apple would make about half the iPhone's power-management chips starting next year, with another source saying this could be delayed to 2019.

Dialog said that it did not expect Apple to start designing its own chips next year, contradicting a report published on November 30 by Nikkei Asian Review.

However, it was acknowledged by the company for just the first time that Apple holds the capability and resources internally to design PMIC and could possibly do so within the next couple of years. Dialog stated that the company does not have reason to believe its current expectations of 2018 Apple business would be impacted by such potential actions by Apple. Dialog earned 74% of its annual revenue from Apple in 2016.

Imagination Technologies saw its own stock fall by 70% when Apple announced that it planned to stop using the company's graphics chip designs within two years.




Suppliers of semiconductors are barred typically by Apple from speaking about supply relationships.

Dialog stock fell 24 percent to 23.70 euros.

Bagherli said the feedback from Apple thus far relative to his product plans for 2019 has been very good and he expected much more clarity on the issue by March relative to terms of the new business for 2019 with Apple. Dialog would update investors when it had more details, he said.

But in comments reported by Reuters, Dialog's chief executive Dr. Jalal Bagherli said on a call to investors Monday that it would be some time before Apple's strategy for 2019 was understood.

The slide in Dialog shares echoed one in April, after Bankhaus Lampe analyst Karsten Iltgen advised investors to sell the stock because Apple was working on its own battery-saving chip.