Dialog Semi slump, banks weigh on European shares; volatility up



Dialog Semiconductor Plc's shares plunged the most in more than 16 years after an analyst warned that Apple Inc. probably will cut back on the use of the company's power-management chips.

Iltgen also noted that Apple plans on hiring more engineers to help produce its own battery-saving chips, on top of the reported 80 new engineers the technology giant recently hired.

Dialog's stock sank 20 percent to 38.26 euros at 12:05 p.m.in Frankfurt, giving the company a market value of 2.98 billion euros ($3.2 billion).

After signing a $9bn deal with Samsung for the manufacturing of OLED displays earlier this month, Apple is now speculated to be working on an in-house power management chip.

Broker Bankhaus Lampe cut its rating on the chipmaker to "sell" from "buy", warning that Apple could be developing its own PMIC. This proves yet again how important Apple's iPhone business really is, especially to smaller companies.

Last week, British graphics chip maker Imagination Technologies' stock dropped almost 63% after Apple announced it would stop using the company's products completely within two years. 70% of Dialog's sales in 2016 came from trade with the Californian tech giant, estimates show.

Romo's honorary Mav day turns spectacle for final home game
That way you won't say so-and-so gained 15 yards, when it was somebody else, something I have often been guilty of. Romo will reportedly do everything except play in the game... at least that's the plan.

Custom chip design isn't a new thing for Apple.

The company has already issued a statement noting that it "knows of no business reason" for the movement of its share price.

The Apple operation has reached a size that is starting to represent a threat for Dialog, according to Iltgen, who believes that a complete shift to Apple's in-house development is unlikely in the short term.

Among other companies, besides Imagination and Dialog, which derive half their revenues from Apple are Hon Hai and Cirrus Logic.

The iPhone's endurance could improve greatly with Apple-made power chips. Many of these companies are nearly unheard of by the general public and just starting to get noticed by Wall Street. "We acknowledge Apple's continued hiring of engineers, in power management and elsewhere, but an additional 80 engineers hired in this area pales in comparison to the over 1,300 engineers Dialog employed at the end of a year ago".

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