Apple Power Management Chip Will Not Be Available Until 2020
Due to the slowdown of mobile phone market’s growth momentum, Apple has looked into adopting different budgeting strategies. An analyst from a prominent investment bank has previously predicted Apple will develop its own power management chip for iPhones and iPads. They theorized that Apple would want to cut cost and streamline their production process and develop own products to replace their current power management chip that’s supplied by Dialog by 2019.
e holds its suppliers at a high standard and demands the best quality. While striving for high quality, Apple is also constantly pressing to lower suppliers’ prices. This leaves little room for supplier profit. However, the truth is Apple has been under much pressure themselves as global sales have declined since 2016; their 2016 yearly growth was only at 2.3%. Much of the sales decline in China and Brazil play a significant effect on sales revenue.
Another reason for the drop in sales is Apple’s innovation is constantly being questioned by the public. More and more manufacturers, such as Samsung, are increasingly taking Apple’s market share. Thus, prompting Apple in taking steps to improve their budgeting strategy.
Dialog’s stock has lost more than half of its value over the past year due to investors’ concern about Apple creating its own power chips, this highlights just how much suppliers rely on Apple. This doesn’t mean that Dialog is shutting down, the company still has opportunities to develop in other areas such as wearable devices, wireless audio devices, etc…
Of course, all of the above is only a hypothesis from IBanker. A couple of days ago, on March 4th, the Chief Executive Officer of Dialog (Jalal Bagherli) claimed that Apple intend to continue to use Dialog’s power management chips. The CEO also told the German magazine Euro am Sonntag that Apple has commissioned the company to design chips for many of their 2019 and even 2020 Apple devices. However, no detail was been provided.
