" "Commerzbank Reiterates "€58.00" Price Target for Dialog Semiconductor (DLG)

" "Commerzbank Reiterates "€58.00" Price Target for Dialog Semiconductor (DLG)

Dialog Semiconductor said on December 4 that top customer Apple could build its own power-management chips for its iPhone handsets rather than rely on the Anglo-German chipmaker.

Semiconductor suppliers are typically barred by Apple from revealing their supply relationships.

Dialog, which supplies chips for iPhones, iPads and watches, conceded in a statement Monday that Apple could be about to move its chip design in-house.

This is, of course, not the first time that a company's shares have dived following fears over loss of Apple business ...

A report late last week said that Apple is working on a brand new processor of its own - a power management chip that should improve battery life on future iPhone models.

A lot is at stake. The company is believed to derive the majority of its income from Apple.

"This is a major disaster", said Tim Wunderlich, analyst at Hauck & Aufhauser.

Dialog said it had no information to suggest Apple was getting ready to start making its own chips that soon.

Dialog Semiconductor slumped to the bottom of the Stoxx 600 on Monday morning after admitting that its biggest customer Apple could be about to design its own chips.

Bagherli said the feedback from Apple thus far relative to his product plans for 2019 has been very good and he expected much more clarity on the issue by March relative to terms of the new business for 2019 with Apple.

Dialog said there was no risk to its existing supply deals in 2018 and it was in the advanced stages of working with Apple on designing "2019-type products" that could lead to commercial contracts by next March.

Apple did not respond to a request for comment.

Imagination has since been sold to China-backed Canyon Bridge Capital Partners for -550 million ($740 million), well below the -2 billion ($2.7 billion) it was worth at its peak in 2012.

Another company, Imagination Technologies, saw its stock drop more than 70% in April, after Apple said it was planning to stop licensing the firm's technology in about two years.