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

Reuters

Reuters

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".

Recommended News

  • Lewis Hamilton coasts to fifth title at Chinese Grand Prix

    Two lap later proper safety vehicle was out after Antonio Giovinazzi suffered his second heavy crash. Yeah, he really squeezed me, but it was good fun and I had the inside for the next corner".
    Missed call helps UNC in final minute of NCAA title game

    Missed call helps UNC in final minute of NCAA title game

    North Carolina's Roy Williams is in his ninth Final Four and fourth championship game, two of which were titles in 2005 and '09. However, too many turnovers burned Gonzaga , including one by Przemek Karnowski with nine seconds left in the game.
    Iraqi government: IS downs army helicopter over Mosul

    Iraqi government: IS downs army helicopter over Mosul

    A total of 31 bodies were taken to hospital, including 14 policemen, said Nawfal Mustafa, a doctor at the city's main hospital. An Iraqi provincial official says suicide attacks in Tikrit , north of Baghdad, have killed at least 22 people.
  • A New Nintendo Direct Announced; Will Focus On ARMS and Splatoon 2

    A New Nintendo Direct Announced; Will Focus On ARMS and Splatoon 2

    It's possible Nintendo could also take time to talk about Mario Kart 8 Deluxe, which is released later this month on April 28. The other game, the Arms, is dubbed as the most exciting to watch in Direct as it is a new property from Nintendo.
    No discrimination in name of caste, religion, colour: Rajnath

    No discrimination in name of caste, religion, colour: Rajnath

    "We will have to agitate not only inside, but outside too", said Kharge questioning what action the government was going to take. But not satisfied with this, the Congress members started shouting slogans and again trooped near the Speaker's podium.

    Netanyahu to AIPAC: 'US & Israel will stand shoulder to shoulder' together

    Pence, who was accompanied by his wife Karen, stressed that "President Trump has made it clear America stands alongside Israel". But he repeated his demand that the Palestinians recognise Israel as a Jewish state, something they have refused to do.
  • PM Netanyahu Welcomes New US Ambassador 'to Jerusalem'

    There is skepticism in the United States and Middle East over the chances for restarting Israeli-Palestinian diplomacy. And there are indications he's reconsidering several stances adopted during the campaign.
    City of Powell River presents Easter egg hunt

    City of Powell River presents Easter egg hunt

    On Easter Sunday, the Brownsville Community Church Team has organized an Easter Egg Hunt open to all children in the community. There were zones marked off for five age groups up to sixth grade and, in total, about 800 colored plastic eggs.
    'Mowgli girl' not raised by monkeys, wasn't naked when recovered, claim cops

    'Mowgli girl' not raised by monkeys, wasn't naked when recovered, claim cops

    This indicates that she was raised by humans. "So it was taken that she had been living in the jungle for long", he said. It was not immediately clear from where the girl went missing and if the family had sought police help to trace her.
  • Pearl Jam, Tupac, Yes, Journey to be inducted into Rock Hall

    Later, Alicia Keys performed a medley of Shakur's songs on piano, including "Dear Mama" and "Changes". David Letterman is to step in for Neil Young to induct Pearl Jam into the Rock and Roll Hall of Fame.

    Democrats push to link Syria strike, refugee ban

    He must immediately revoke the Muslim travel ban and end restrictions on refugees from Syria, fleeing the horrors at home. That January order also meant to suspend for 120 days admissions of all refugees, and indefinitely, Syrian refugees.

    Trump lauds 'outstanding' relationship with Chinese leader

    Zhu Feng, an global relations specialist from Nanjing University, attempted to play down the significance of the U.S. attacks. The attack against a Syrian air base was the first US assault against the government of President Bashar Assad.

We are pleased to provide this opportunity to share information, experiences and observations about what's in the news.
Some of the comments may be reprinted elsewhere in the site or in the newspaper.
Thank you for taking the time to offer your thoughts.