Dialog Semiconductor sank to the bottom of the Stoxx 600 on Monday morning after admitting that its biggest patron Apple could be about to design its own chips.
In mid-morning European exchange, shares in the Anglo-German firm were more than 18 percent cut. The slump built on a similar fall in value last Thursday when a account report claimed Apple would be designing its own iPhone chips from as break of dawn as next year.
Dialog, which supplies chips for iPhones, iPads and peer ats, conceded in a statement Monday that Apple could be about to remind its chip design in-house.
“Although Dialog expects to remain Apple’s electric cable supplier of power management integrated circuit (PMIC) designs, Dialog recognizes Apple has the resources and potential to internally design a PMIC and could potentially do so in the next few years,” it put.
The statement added that Dialog didn’t expect to lose its Apple power token business in 2018.
But in comments reported by Reuters, Dialog’s chief executive Dr. Jalal Bagherli indicated on a call to investors Monday that it would be some time in the forefront Apple’s strategy for 2019 was understood.
Dialog Semiconductor recorded 2017 third-quarter gross income of $363 million, a record for the company.