Apple is developing its own power management chips, says analyst

British-German tech company Dialog Semiconductor paid the price for doing so on Tuesday, when its shares plummeted after an analyst suggested that Apple might drop the tech firm as a supplier.

Iltgen went on say that Apple has a team of 80 engineers that are now working on a homegrown PMIC at design centers located in California and Germany, and that the Apple chips could arrive in iPhones as early as 2019.

There has been a steady flow of engineers from Dialog to Apple over the past year, according to a person familiar with the situation who wasn't authorized to speak on the topic.

Apple has said that they plan to design their own graphics card for use in the iPhone, but the company may also be planning to internalize other aspects of the iPhone's development. Morgan Stanley believes Dialog entered into a partnership with Apple to design a wireless charging system.

Apple accounted for three quarters of Dialog's sales in 2016, according to the company's most recent annual report.


Do you feel that Apple's custom PMIC and GPU will be found in iPhones and iPad devices starting from 2019?

It's interesting to see that Apple is moving down its supply chain and replacing its most important suppliers one by one.

The company trusts that Apple is setting up power-management plants in Munich and California. Apple is trying to reduce its external dependencies, minimising its reliance on suppliers by bringing the design of key components home to its research facilities.

The analyst said Apple could have its own power chips ready by 2019's iPhone line, adding that the company is working on facilities in the US and Germany. An expert at Barclays Plc, in his report, detailed that he acknowledges that Apple's kept procuring of experts, in power management and somewhere else, however, an extra 80 engineers contracted here could not hope to compare to the more than 1,300 designers Dialog utilized a year ago.

Tech stocks were the biggest sectoral losers, down 0.8 per cent after Dialog Semiconductor dropped 18.4 per cent. Over the last decade, Apple has sold over 1 billion iPhones, and millions more iPads, laptops, and smartwatches.


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