Dialog Semiconductor, which makes most of its revenue from supplying power-management chips to Apple, has reported record quarterly revenue of $463M in Q4 last year. This was up 27% year-on-year.
The firm saw its shares climb 4% on the news, though not clawing back the fall following last month’s admission that it faced an uncertain future with Apple …
Dialog shares fell by as much as 19% after it admitted that its contract to supply power management chips to Apple could be at risk. The company said that there was a danger that Apple could at some stage switch to making its own power-management chips as the iPhone maker seeks to bring more of its hardware under its own control. That possibility was first rumored in April of last year.
Dialog’s CEO said that he didn’t see any immediate risk, and had no hard information on Apple’s plans, but as head of a public company had a legal duty to raise risk factors.
It follows Apple’s announcement earlier in the year that it planned to stop using graphics chips designed by Imagination Technologies, which news resulted in the company’s share price falling by 70%.
Dialog and Imagination are just two of half a dozen companies for whom Apple orders represent half or more of their revenues.
Via Business Insider
