Dialog Semi admits Apple-designed power chips could come 'in the next few years'

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in iPhone
Power management chip supplier Dialog Semiconductor on Monday reinforced rumors that Apple could design its own such chips in the future, while implying they may still a few years out.




"Apple has the resources and capability to internally design a PMIC and could potentially do so in the next few years," Dialog said during a conference call with investors, according to Reuters. The firm is believed to earn more than half of its revenue from Apple orders.

At the same time, Dialog said it "does not have reason to believe its current expectations of 2018 Apple business would be impacted," and that it's already collaborating with Apple on "2019-type products" that could result in contracts signed by March 2018. CEO Jalal Bagherli added that Apple's feedback on 2019 device plans has been "very good."

Dialog further claimed that it had received special permission to name Apple as a client. Apple suppliers are normally blocked from mentioning the company by name, even though partnerships are often well-known by media and the supply industry.

Dialog shares dropped some 19 percent after the conference call. In fact their value has fallen by almost a third since a Nikkei report late last month, which first teased the possibility of Apple-designed power chips. The site offered conflicting sources though, with some saying that chips could be ready for late 2018 products, but one asserting they wouldn't be ready until 2019.

Apple has increasingly turned to internal design as a way of reducing its dependence on outside parties while optimizing performance. Some examples include its A-series processors, the W1 and W2 wireless chips, and upcoming graphics processors.

Comments

  • Reply 1 of 5
    emig647emig647 Posts: 2,396member
    May want to review that first paragraph. 

    It it makes me wonder who are the companies left apple is forced to depend on. 
  • Reply 2 of 5
    jbdragonjbdragon Posts: 1,912member
    This was only a matter of time. There's a lot of people working for Apple, not only here in California, but around the world. It started with the CPU and the A* processor. There's been other minor chips sense then, and then the GPU, and now power management, which is important also. I wonder if Dialog Semi is a future company to sue Apple over copyright. Stealing their tech, and so on and so on.
    watto_cobra
  • Reply 3 of 5
    It seems to me that this is more about stock price manipulation than it is about Apple's parts supplier roadmap.
    watto_cobra
  • Reply 4 of 5
    Rayz2016Rayz2016 Posts: 4,468member
    jbdragon said:
    This was only a matter of time. There's a lot of people working for Apple, not only here in California, but around the world. It started with the CPU and the A* processor. There's been other minor chips sense then, and then the GPU, and now power management, which is important also. I wonder if Dialog Semi is a future company to sue Apple over copyright. Stealing their tech, and so on and so on.
    It looks to me as if  Dialog Semi has seen the writing on the wall, and instead of throwing a year of future business out of the window, they’ve decided to work with Apple to give themselves a shot at finding new business. 

    Apple doesnt usually like their suppliers naming the company as a customer. I suspect that Apple is letting this one by so that Dialog Semi can use Apple’s name to help secure new customers. 
    RacerhomieXjony0watto_cobra
  • Reply 5 of 5
    foggyhillfoggyhill Posts: 4,767member
    Rayz2016 said:
    jbdragon said:
    This was only a matter of time. There's a lot of people working for Apple, not only here in California, but around the world. It started with the CPU and the A* processor. There's been other minor chips sense then, and then the GPU, and now power management, which is important also. I wonder if Dialog Semi is a future company to sue Apple over copyright. Stealing their tech, and so on and so on.
    It looks to me as if  Dialog Semi has seen the writing on the wall, and instead of throwing a year of future business out of the window, they’ve decided to work with Apple to give themselves a shot at finding new business. 

    Apple doesnt usually like their suppliers naming the company as a customer. I suspect that Apple is letting this one by so that Dialog Semi can use Apple’s name to help secure new customers. 
    If Dialog really think they're going to lose that much revenue, they have to declare it otherwise it will leak anyway an some people will be accused of insider trading for sure.
    But, declaring early and not going into tailspin mode leaves them a bit more time to react (or even downsize gracefully).
    These kind of things have a broader use than the GPU chips so they may be OK, especially if having Apple as a client meant they couldn't take other jobs.

    charlesgreswatto_cobra
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