Apple could be designing its own power management chip as well

Apr 13, 2017, 00:43
Apple could be designing its own power management chip as well

Apple is working on an in-house chip dedicated to power management, the latest sign that it wants to develop more core technologies, instead of buying or licensing them from other technology companies.

On this news Dialog's share prices fell about 20% in early trading on the stock market.

About 80 engineers at Apple are working on chips for use as soon as 2019, he said, citing unnamed industry sources.

The prediction comes from analyst Karsten Iltgen at German investment bank Bankhaus Lampe, who said that Apple will at the very least cut back to some degree on Dialog's supply of power management chips for the iPhone, according to a research note obtained by Bloomberg.

A source says Apple is recruiting Dialog's top engineers in Munich, Reuters notes: "They are poaching like insane". Dialog replaces numerous discrete power administration spares with one exceedingly incorporated gadget, empowering our users to create lighter and thinner convenient applications with higher power effectiveness bringing about longer battery life.

A Dialog spokesman declined to comment.

Shares in Balfour Beatty were the biggest gainers, up 5.9 percent, while Givaudan jumped 3.5 percent after its first quarter sales beat a Reuters poll. In-house designed Apple chips will also allow for quicker customization and deployment to future products of the company. It isn't unusual to see employers flowing between Apple, and it's suppliers.

Iltgen, who has been covering the semiconductor maker for over 15 years, helped send the stock down nearly single-handedly.

Apple is using the same tactic with both companies, assuming the Bankhaus Lampe report is right: Hire away the talent you need from a supply partner to make your own version of the same chip. "Customer diversification seems more important than ever".

Told Imagination Technologies, the designer of the graphics chip now in the iPhone, that it planned to stop using its technology.

Apple - according to various analyst estimates - accounts for a whopping 70% of Dialog's overall sales. British technology firm Imagination Technologies saw its stock drop 72% earlier this month after Apple said it was planning to stop licensing the firm's technology in about two years.