Dec 8, 2017

Dialog looks to avoid peril of over-reliance on Apple

Last week Apple allowed Dialog Semiconductor, the Anglo-German company that makes chips that help manage the power usage in iPhones, iPads and the watches, to talk about their relationship. Charles Lepetitpas, an analyst with Natixis, says the market has priced in an armageddon scenario for the possibility of Dialog losing all of its Apple revenue. "It is important to stress that Dialog manages the design of around 12 different chips," he says, adding that while Apple may have about 80-100 employees in this area, Dialog requires about 1,000 experts to build its power management chips. Dialog is in a more solid financial position than Imagination, which was in the midst of a restructuring process and had been losing money for years when the Apple relationship ended. Even though Dialog remains confident that its Apple business is not about to drain away, it is more than aware of its need to diversify.

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