Apple supplier takes a hammering
Shares in Dialog plunge after analyst cuts rating on ‘strong evidence’ the phone maker is developing own power management chip
Frankfurt — Dialog Semiconductor risks losing a crucial supply deal with Apple, according to an analyst who cut his rating on the stock on Tuesday, sending the Anglo-German chip maker’s shares down by as much as one-third. Bankhaus Lampe, a private bank, reduced its rating on Dialog to sell from hold, saying Apple was working on its own battery-saving chip for the iPhone, which could replace Dialog’s power management integrated circuits as early as 2019. Apple accounted for more than 70% of Dialog’s 2016 sales, analysts estimate. The German company says it is the world’s top maker of power-management chips used in smartphones, with roughly 20% of the market. Shares in Dialog fell as much as 36% on Tuesday. They more than doubled in the second half of 2016 on rising expectations for the iPhone 8 due out later in 2017. By late morning, they had halved their losses to trade down 19% at €37.70. Apple’s suppliers are in the spotlight after Imagination Technologies last week revealed Appl...
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