HomeIndustryApple Inc. (AAPL) Tipped to Build iPhone Power Management Chips In-House

Apple Inc. (AAPL) Tipped to Build iPhone Power Management Chips In-House

An investor note by Karsten ltgen of Bankhaus Lampe today has claimed that in around two years, Apple will be moving at least some part of its iPhone semi-conductor business in-house, and it will cut back on supply from Dialog Semiconductors.

As a result of the note, shares of Dialog Semiconductor PLC plunged to its lowest point in 16 years, as it became the second company recently to suffer from over-reliance on business from Apple. The Lampe investor note claims that Apple is looking to control more of its iPhone production by stating “There is strong evidence that Apple is developing its own power-management integrated circuits and intends to replace the chip made by Dialog at least in part,”.

This news comes after it was revealed recently that Apple is set to begin production of Graphics Processing Unit(GPU) chips in-house for its iPhone, and it would cut back on business with long-time partner Imagination Technologies. The chips made by Apple would be used not only for iPhone, but also for AppleTV and iPod. After this news broke, market value of the UK-based display tech company went down by a massive 69 percent, and today it looks like Dialog Semiconductors is the latest victim of major dependency upon Apple as a customer.

After the Imagination Technologies news made the rounds, comments flew across the internet about the relative pros and cons of having Apple as your biggest customer: Some even said that a company of Apple’s size had the power to make or break entire industries, let alone a manufacturing firm or two. Today, after the affect that a simple investors’ note has had on Dialog, we could safely assume that Apple holds the cards in negotiations with other suppliers in the near future.

Danial Ali
Danial is a seasoned contributor that takes a particular interest in all things Apple since he jumped aboard the iPhone ecosystem. Hobbies: Gaming and reading


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