Published: Sun, December 03, 2017
Markets | By Noel Gibbs

Apple to design its own power management chips

Apple to design its own power management chips

Shares of Dialog stock were down nearly 18% as of the time of writing, no doubt in large part because Apple's chips were responsible for around 74% of Dialog's revenue previous year.

There's a chance the chips might not actually be available until 2019, according to one of the sources, but even so, the market hasn't been too kind to Dialog in the wake of the news.

Dialog derives more than half of all of its revenue from Apple, analysts estimate.

The in-house chips, supposedly "the most advanced in the industry", will pave the way for future iPhone models to have a better performance and battery life balance. It would help Apple differentiate its products from rival offerings.

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Bloomberg Intelligence analyst Woo Jin Ho said the next generation of the iPhone should still use Dialog power management chips, but after that, as the Nikkei report suggests, Apple may go in-house. The rest would use Dialog processors. Well, as of now, there are no words the new chips will be used in 2018's iPhones or not, most probably it will not.

Apple's own chips would be manufactured exclusively by Taiwan Semiconductor Manufacturing Co. which now makes Dialog's power management chips. It would be capable of better monitoring and controlling energy consumption among different components. The Cupertino tech giant is working on an in-house power management chips, which should increase the overall efficiency of the battery.

The Taiwan Semiconductor will be entrusted with the manufacture of chips and over the years it has focused in the manufacture of Dialog's chips.

Despite already being TSMC's biggest customer with 17 percent, Apple's contribution is expected to see a rise to 20 percent throughout the remainder of this year and even beyond that during 2018 according to Bernstein researchers.

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After splitting with Imagination Technologies, Apple is continuing its trend of bucking reliance on others in favour creating its own technology. Imagination ultimately agreed to be acquired by a Chinese-backed private equity firm. Apple has apparently sidelined suppliers in the last one year resolving to produce a large number of its parts in house. Qualcomm has sought a ban on the iPhone X, iPhone 8, 8 Plus, as well as the iPhone 7 series.

The chipmaker has also pointed to the similarities between the webOS interface and the iPhone X's multitasking interface. It has accused Apple of copying the webOS interface "without license or permission". The handset also comes with a wide range of new features like Apple's FaceID. On average stores are receiving 5-10 iPhone Xs per shipment and typically indicate the phones sell out soon after.

There was some doubt regarding the iPhone X's availability through the crucial holiday shopping season, but that has seemingly become a non-issue. We recently heard that shipping in the United States had improved to 1 to 2 weeks, this has now changed again and it looks like the handset will now ship within a week if you order one now.

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