According to Dialog Semiconductor, Apple will add a new supplier of power management chips, which will change the situation that the power management chips was previously supplied by Dialog Semiconductor alone. At the same time, this also means that Dialog's orders from Apple this year will be reduced by 30% than expected.
After the news broke, Dialog Semiconductor's share price fell 3.9%. Some analysts believe that more than half of Dialog Semiconductor's total annual revenue comes from Apple's power management chip orders. If the power management chip orders decrease, Dialog Semiconductor's revenue in 2018 is expected to drop by 5%. However, Dialog said that it is still expected to achieve a year-on-year growth in revenue in 2018.
Jalal Bagherli, CEO of Dialog Semiconductor, said in a conference that the reduction in Apple's order volume will have a similar effect on 2019 sales as in 2018. He said that Apple did not explain why it was necessary to increase the number of suppliers of power management chips.
Jalal Bagherli said: "If you think about it, if all three of Apple's new iPhone models use our power management chip, this means that the new iPhone will not have performance-related problems. Maybe Apple chooses multiple vendors instead of A separate company is to reduce risk."
Jalal Bagherli said that at present, Apple has not told him which company is the second supplier of power management chips.
