Jun 15, 2020

Apple supplier Dialog turns to older technologies to weather crisis

A surge in demand for notebooks, tablets, laptops and headphones during the coronavirus crisis is helping Anglo-German semiconductor specialist Dialog make up for the effects of the pandemic on its core smartphone components business. Chief executive Jalal Bagherli said the Apple supplier, which was hit by the shutdown of its largest customer's production plants in China, was experiencing a huge increase in demand for devices used for working and teaching at home. "Some older technologies are seeing a short-term demand surge that may continue through into Q3," Mr Bagherli told the Financial Times, adding that they included low-cost tablets for the education and entertainment of children unable to attend school. The former Sony executive, who has led Dialog for 15 years, also revealed that the margins for older products were sometimes even higher than its most popular, state-of-the-art components, although he did not expect the rush for notebook and tablet chips to effect the company's overall profitability. As well as leading to increased demand for indoor tech, the Covid-19 crisis has caused a rush on products for outdoor pursuits, Dialog said.

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