Dialog Semiconductor rebuffed speculation Apple will drop its power management integrated circuits (PMICs) from iPhones in 2018.
While the UK-headquartered company conceded in a statement Apple “has the resources and capability to internally design” a PMIC in the coming years, it “does not have reason to believe” the US vendor will take chip production in house in 2018.
Dialog’s response comes in the wake of a report from Nikkei Asian Review last week indicating Apple might begin designing power chips internally in 2018. The news sent Dialog shares tumbling more than 20 per cent.
The move would likely have significant consequences for Dialog, which Nikkei Asian Review noted derived 75 per cent of its revenue from Apple in 2016.
When Apple similarly ditched graphics technology provided by UK-based Imagination Technologies earlier this year, it ultimately led to the company being sold to private equity company Canyon Bridge Capital Partners.
Dialog noted it still appears to have Apple’s backing because it continues to win “new design engagements and opportunities” from the vendor. However, it explained an ongoing relationship is “contingent on Dialog meeting Apple’s technology quality, price and volume expectations”.