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).
Apple is believed to be developing its own custom power management chips for iPhone and iPads, at least according to one industry analyst (via Reuters). The analyst noted that Apple has steadily hired engineers from the United Kingdom-based Dialog over the past year, from the chipmaker's pool of about 1,300 engineers, but a person familiar with the situation noted that "it isn't unusual" to see employees flowing between Apple and its supplier. 'They are poaching like insane, ' the person said.
Apple did not respond to a request for comment. He added that the company is not planning to release any official statement.
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.
Imagination's stock plunged 70 percent.
Iltgen is a four-star rated analyst for the accuracy of his earnings estimates on Dialog and ranks sixth among 16 analysts covering the stock, according to Thomson Reuters data.
Dialog has made several attempts to diversify beyond Apple and other smartphone customers in the past few years. Since battery life and durability remain common complaints with the iPhone, it makes commercial sense for Apple to attempt improvements in this area. Meet AI ecosystem leaders who are shaping a new digital economy. This chip could replace Dialog's power management integrated circuits (PMIC) as early as 2019. The stat once again brings to light, as to how overly dependent third-party suppliers of Apple are, on the company for their sales and henceforth revenues.
Apple's Chief Design Officer Jony Ive has ruled out using larger batteries as it would hamper the design of the company's flagship product.
Imagination has questioned Apple's ability to develop a GPU architecture from the ground up without infringing on the United Kingdom company's intellectual property rights. "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".