Apple aims to design its own iPhone chips

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Dialog supplies power management chips for Apple's iPhones, iPads and watches which accounts for three-quarters of its revenues a year ago.

The stock has lost half its value since April on investor concern that Apple is working to build its own power chips, reports Reuters.

Its chief executive said it would still supply chips for to Apple in 2018, but it couldn't be certain about its 2019 deal with the firm for another few months.

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Dialog Semiconductor is now the only supplier of power management chips for the iPhone, and the company on Monday confirmed that Apple does indeed have the capability of designing its own silicon to handle various power-related aspects on iPhones.

Dialog said it had no information to suggest Apple was getting ready to start making its own chips that soon.

A Financial Times report today confirms the rumor: "Apple supplier Dialog Semiconductor slumped again on Monday after the Anglo-German group said it recognized its largest customer could move design for one of its chips in-house 'in the next few years.' As noted in the chart below has fallen further to 25.84 Euros (will fluctuate)".

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It is working with Apple on plans for 2019 products, and will have a better idea about its future contracts with Apple by March, the company added.

Imagination has since been sold to China-backed Canyon Bridge Capital Partners for -550 million ($740 million), well below the -2 billion ($2.7 billion) it was worth at its peak in 2012. He said Dialog had already begun sharing chip designs for 2019's iPhone with Apple. "We feel it's reasonable to recognise Apple has the resources and capability to design its own [power management chip]". But Dialog's shares took a severe hit in the process, even as the company tried to reassure investors that it'll be in business with Apple for at least two years.

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