c-RTR4MPEF-Chance Chan

This is the latest UK company to suffer the consequences of over-dependence on Apple

24%

Shares of chipmaker Dialog dropped 24% on Monday (Dec. 4), after it said that Apple, its main client, was capable of building the same kind of chips that the UK firm now supplies.

Published   |  Photo by Reuters/Chance Chan
c-RTR4MPEF-Chance Chan
24%

Dialog will continue to supply power management chips to Apple in 2018, but that it was talking to Apple about designing other types of products from 2019 onwards.

c-RTR4MPEF-Chance Chan
24%

Apple was involved in a similar situation with another UK chipmaker, called Imagination, earlier this year. In that case, Apple actually stopped buying products from the company, with dire consequences.

c-RTR4MPEF-Chance Chan
24%

After Apple announced it would stop using Imagination’s graphics processors, the company’s shares dropped 70%. Imagination ended up selling itself to Chinese-backed US firm Canyon Bridge.

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