Apr 11, 2017
Dialog stock dumped on fears Apple will drop chips
Shares in Dialog Semiconductor fell more than a third on Tuesday, after an analyst report prompted fears the Anglo-German chipmaker may lose its single biggest customer, Apple. Analysts at German private bank Bankhaus Lampe downgraded their rating on Dialog, suggesting that Apple may be planning to develop a similar in-house replacement for its power management chips. "We believe Apple is setting up power management design centres in Munich and California . . . about 80 engineers at Apple are already working on a [chip] with specific plans to employ it in the iPhone by as early as 2019," wrote Karsten Iltgen, an analyst. Barclays Capital added: "Apple has been using increasing content from Dialog over recent design cycles and provided extended visibility over the past few years . . . the contrary was true at Imagination." Gene Munster, a longtime Apple analyst, told the Financial Times last week that investing in Apple suppliers was akin to playing "Russian roulette".
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