Apple is developing in-house power management chips, German analyst reports

Apple is developing in-house power management chips, German analyst reports
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. Karsten Iltgen, analyst for German bank Bankhaus Lampe, cut his rating on Dialog Semiconductor this Tuesday, sending the chip manufacturer’s shares down the slope. Mr Iltgen statated that “strong evidence” suggests Apple is looking to ditch Dialog’s power management integrated circuits (PMIC), and is allegedly working on its own unit that could go live by 2019.

After Bankhaus Lampe reduced its Dialog rating to “sell” from “hold”, the chipmaker saw its shares go down by as much as 36%. 70% of Dialog’s sales in 2016 came from trade with the Californian tech giant, estimates show. Just to add some perspective to the financial impact this news has, Dialog accounts for about 20% of the global market, and is one of the leading PMIC producers in the world.

The company saw its shares soar by a double in 2016, as the common expectation was that trade with Apple shall continue and flourish further in 2017, when the iPhone 8 is due to make a splash. According to a source close to the matter, Apple has been “poaching like crazy” for Dialog engineers, trying to put together a team of top professionals. Bankhaus Lampe cites sources who suggest that Apple is setting up power management design centers in Munich and California, already having around 80 of its own engineers working on the new battery chip. The report goes on to suggest Apple might need to hire more than 1,000 engineers to completely replace its business with Dialog.

Last week Imagination Technologies issued a statement announcing that Apple plans to go in-house with its graphic chips, too, causing the company’s stock to go down by 70%.

It seems that next iPhone will truly be something special and more-Apple than any of its predecessors, given the dynamic shifts in manufacturing strategy we have seen. However, rumor on the street is that you may not get to touch one until after September, unlike expectations. In any case, Apple’s anniversary iPhone is set to be a record-breaker in many ways, and recent financial news on Dialog do nothing but add fuel to the anticipation within us all.

source: Reuters via 9To5Mac

FEATURED VIDEO

20 Comments

1. Nopers unregistered

So they want to make everything proprietary so they don't have to pay licensing fees and maybe better drivers. This could be good to cut the cost of manufacturing.

16. marorun

Posts: 5029; Member since: Mar 30, 2015

Nopers Wana bet they gonna pocket all thats extra money? :)

18. LyannaStark

Posts: 91; Member since: Apr 07, 2017

I'm sure that they're going to find some way to jack the prices up because of it.

2. You_Dont_Say

Posts: 431; Member since: Jan 26, 2015

Oh great, hopefully this will reduce the number of iPhone related bike deaths.

4. kiko007

Posts: 7491; Member since: Feb 17, 2016

I don't expect much from people of your ilk, but I'll ask anyhow: What does post you just made have to do with, well, anything regarding this article? Ahhh... whatever. Not like you actually had a shred pf credibility or common sense to begin with , why am I wasting my time on the likes of you and Techie? That's a question I should ponder more often...

14. bucky

Posts: 3774; Member since: Sep 30, 2009

Just trying to make something close to what the samsung experienced. Failing miserably of course.

3. RoboticEngi

Posts: 1251; Member since: Dec 03, 2014

So what they show is that if you do business with apple. They will steal all your manpower and start their own "in-house" developement....And send you company in the grave...

5. AmashAziz

Posts: 2891; Member since: Jun 30, 2014

That's how businesses work.

6. kiko007

Posts: 7491; Member since: Feb 17, 2016

Not in their warped reality...

7. AmashAziz

Posts: 2891; Member since: Jun 30, 2014

True dat!

10. joey_sfb

Posts: 6794; Member since: Mar 29, 2012

If you work with poisonous serpents make sure you have the know how to protect yourself against their posionus bites which would eventually happen.

20. NoToFanboys

Posts: 3231; Member since: Oct 03, 2015

It doesn't make it right thought.

11. RoboticEngi

Posts: 1251; Member since: Dec 03, 2014

It is? I guess I'm just being old school, not trying to rip off everyone I get in touch with. But that is ofcourse just me. Nowadays in this Apple world it all about getting the money, no matter how you get it.

17. marorun

Posts: 5029; Member since: Mar 30, 2015

RoboticEngi. I so much understand you. but today world is all about me myself and I lol.

8. Back_from_beyond

Posts: 1241; Member since: Sep 04, 2015

Seems to be Apple's latest trend, spend years analyzing hardware and firmware from third parties for your devices, then make off with what you've learned and start your own development. Then as the company that previously provided you those bits of hardware struggles to survive or even goes belly up, buy their patents cheaply to secure your essentially stolen hardware.

9. Predict

Posts: 16; Member since: Apr 11, 2017

Why all this hate? I can see only 1 thing - better control over hardware/software = better optimizations and end user great experience unlike poor Androids, and i own a Oneplus 3T

12. RoboticEngi

Posts: 1251; Member since: Dec 03, 2014

Nothing wrong with that. But they have a very tight coop with these companies for years, and the companies let them in on all of the great ideas. Then suddenly Apple goes solo, grab all their genius engineers and the companies has to shut down. That is what is "wrong"..... if only they started to do it from scratch themselves....

13. zunaidahmed

Posts: 1182; Member since: Dec 24, 2011

Business is never about making best friends or making eternal enemies, it's all about common interest, which is profit. If you can't accept that, you shouldn't really be doing business. Apparently, Apple and Sumsung knows that very well, so they fight like hell in courts but still do great business together.

19. juandante

Posts: 679; Member since: Apr 23, 2013

wait and see because for the moment iPhone is loosing ground.

15. HomerS

Posts: 419; Member since: Sep 19, 2014

Dont trust Apple with your business, they will swollow u up and spit u out.

Latest Stories

This copy is for your personal, non-commercial use only. You can order presentation-ready copies for distribution to your colleagues, clients or customers at https://www.parsintl.com/phonearena or use the Reprints & Permissions tool that appears at the bottom of each web page. Visit https://www.parsintl.com/ for samples and additional information.