Home » Money

Shares in chipmaker Dialog plunge over Apple contract doubts

12 April, 2017, 02:41 | Author: Paula Vaughn
  • Reuters

Among the leading chip-equipment stocks that fell were Lam Research (LRCX), KLA-Tencor (KLAC) and Applied Materials (AMAT) - all three recently hitting record highs.

About 80 engineers at Apple are working on chips for use as soon as 2019, he said, citing unnamed industry sources. Dialog's stock dropped over 16% on the news to 39.94 euros per share at the time of publication.

Shares of chip maker Dialog Semiconductor (DLGNF) are down 17% at €39.99, following speculation the company is at risk of losing the socket for its power-management chip in Apple's (AAPL) iPhone, according to a report from investment bank Bankhaus Lempe, as summarized in a report by Eric Auchard and Harro Ten Wolde of Reuters. The report goes on to suggest Apple might need to hire more than 1,000 engineers to completely replace its business with Dialog.

The downgrade comes after Imagination Technologies was advised by Apple that it planned to replace Imagination's graphics chip designs in upcoming products, sending shudders through Apple's global component supply chain. Dialog's partnership with Energous was seen as an indirect proof that Apple is interested in long-range wireless charging for the iPhone 8.

An analyst from German bank Bankhaus Lampe claims Apple is developing its own custom power management chips for use in its mobile devices.

AT&T to acquire Glen Allen-based Straight Path
AT&T agreed to buy Straight Path for $1.6 billion, which includes debt and an amount owed to the Federal Communication Commission. Shares of Straight Path Communications Inc (NASDAQ: STRP ) traded down 0.50% during trading on Tuesday, hitting $91.18.

Dialog said it saw no business reason for the share drop and that it remained comfortable with its financial outlook for "good revenue growth" in 2017, which would mark a recovery from a 12-percent decline a year ago. Apple made up 70% of Dialog's 2016 sales, the report says.

"Dialog's chip has continued to help iPhone outperform high-end Android smartphones on power consumption and battery life", they added.

Apple has been busy taking in-house development work for its graphic processing units.

Imagination has questioned Apple's ability to develop a GPU architecture from the ground up without infringing on the United Kingdom company's intellectual property rights. Many team members are said to have been drafted in from Dialog over the past year, although the companies have previously transferred staff members due to their close collaboration.

Apple sells tens of millions of iPhones every year.

Recommended:

  • G7 states reach no deal on sanctions against Russian Federation  and Syria

    G7 states reach no deal on sanctions against Russian Federation and Syria

    The official said the presence of the surveillance drone over the hospital couldn't have been a coincidence. But the White House has also said Trump could authorise more strikes if Syria uses chemical weapons again.
    Tesla is now the most valuable American car company

    Tesla is now the most valuable American car company

    In other Tesla news, VP John Douglas Field sold 1,000 shares of the stock in a transaction that occurred on Tuesday, January 10th. A way for the California firm of 'drain the last copies of its Model S 60 and 60D which will soon cease to be produced.
    Myles Garrett explains why he would not do interview with Booger McFarland

    Myles Garrett explains why he would not do interview with Booger McFarland

    Tony Grossis is out with Mock Draft 6 .0 as the never ending pre-draft season inches another week closer to the 2017 NFL Draft. But I just don't see it for the Browns at No. 1 and would be surprised if it happens.
  • Pool lets you swim and fly at same time

    Pool lets you swim and fly at same time

    An infinity pool is a swimming pool whose positioning gives the impression that it merges into the surrounding landscape. For those who aren't into swimming above it all, there is another (opaque-bottom) pool located on the fourth floor.
    White House Says Trump Open to More Action in Syria

    White House Says Trump Open to More Action in Syria

    Barrel bombs are oil drums or cylinders packed with explosives and shrapnel. Spicer mumbled the question back to himself before finally answering.
    Supreme Leader Snoke's Star Wars: The Last Jedi costume details revealed

    Supreme Leader Snoke's Star Wars: The Last Jedi costume details revealed

    To hype the big news even more, the announcer says, "Because when you hear it, you'll want to be part of the Force". Will they be releasing the first preview or the first trailer for " Star Wars: The Last Jedi? ".
  • BC Liberals stand pat with platform

    BC Liberals stand pat with platform

    New Democrats reportedly planning to release their housing platform on Thursday - the issue may be the Opposition's to lose on. It touted previous promises including eliminating unpopular medical services premiums over the long term.

    Netanyahu: Israel committed to working with Trump for peace

    The West, including Israel, wants a strong, consistent, moral USA foreign policy based on shared values. Israeli ambassador to the US Ron Dermer speaks at the 2017 AIPAC conference.
    Prince George, Princess Charlotte to be in Pippa's wedding

    Prince George, Princess Charlotte to be in Pippa's wedding

    However, someone speaking on behalf of Vogue has said she would not have been able to attend the big day due to work commitments. But her role is uncertain not like for James Middleton and Matthews' sibling who will be possibly members of the wedding party.
  • Official Launch Dates to Be Announced on April 12?

    Official Launch Dates to Be Announced on April 12?

    Splatoon and ARMS are both titles Nintendo users are looking forward too, especially as everyone has started to finish up Zelda . It's possible Nintendo could also take time to talk about Mario Kart 8 Deluxe, which is released later this month on April 28.
    Rocket hits S. Israel from Egypt's Sinai, army asserts

    Rocket hits S. Israel from Egypt's Sinai, army asserts

    Hours later, a suicide bomber killed at least 11 people and injured 25 in front of a church in Alexandria, according to reports. A rocket fired by militants in Egypt's Sinai Peninsula hit a community in southern Israel on Sunday, the army said on Monday.
    How Efe won Big Brother Naija 'See Goobe' edition

    How Efe won Big Brother Naija 'See Goobe' edition

    The night started with Marvis getting evicted from the house, which came as a surprise to many of her fans. The One campaign will make Bisola represent Nigeria at the United Nations later in the year.


Popular

North Korea says Syria airstrikes prove its nukes justified
Seoul time from a site in the vicinity of Sinpo, South Hamgyong province, a South Korean Defense Ministry official said. When conducting nuclear and missiles tests in recent years, it has cited what it calls increasing USA military threats.

McDavid hits 100 points, Ducks clinch NHL Pacific title
McDavid hit the 100-point plateau on the Oilers' fifth goal just over a minute later, setting up Draisaitl's 29th of the year. In his second season, 2006-07, Crosby won the Art Ross as scoring leader, the Hart Trophy as MVP, and the Lester B.

Arsenal humiliated again in 3-0 loss at Crystal Palace
The last time the north London outfit lost four league away matches in a row came in 1995 under the management of Stewart Houston. Former Tottenham man Andros Townsend opened the scoring before Yohan Cabaye's well-taken second and Luka Milivojevic's penalty.

India, Australia ink cooperation pacts during PM Turnbull's viist
But the Comprehensive Economic Cooperation Agreement (CECA) will not be among the pacts the nations will sign during the trip. Turnbull reiterated Australia's support for India's membership of the Asia Pacific Economic Cooperation forum (APEC).

Jacksonport: Easter Egg Hunt on April 15
The Exchange Club of Madison will hold its 52nd annual Easter Egg Hunt on Saturday, April 8 at the Madison Surf Club. The children will be divided into four age groups and the Easter Bunny is expected to make a special appearance.