Dialog intends to continue to closely support Apple in developing and supplying sophisticated next generation power management and mixed signal technology for use in Apple's products.
Reuters reports that Dialog's CEO was keen to point out that it was simply admitting to a risk factor, and that it has not yet heard anything concrete about Apple's plans. Since last Thursday, shares in the Frankfurt-listed company have fallen by a third.
Dialog said it had no information to suggest Apple was getting ready to start making its own chips that soon.
Dialog noted that the company recognizes Apple has the resources and capability to internally design a PMIC and could potentially do so in the next few years. The company is believed to derive the majority of its income from Apple.
But investors have been spooked by reports in recent months that the United States tech giant has been poaching staff from Dialog.
TRADEMARK VIOLATION NOTICE: "Dialog Semiconductor (DLG) Given a €43.00 Price Target by Credit Suisse Group Analysts" was originally published by Dispatch Tribunal and is the sole property of of Dispatch Tribunal.
The shares have lost nearly half their value since March.
China's top state silicon chipmaker has indirectly raised its stake in Dialog Semiconductor (DE:), whose share price has plummeted on signs it could lose its top customer Apple Inc (O:). This has meant companies including Arm Holdings, Imagination, Laird and Dialog have had to talk cryptically about the impact of "popular recently launched phones" in their financial statements.
Francois Meunier, an analyst at Morgan Stanley, said the market has already priced in a partial or full loss of the Apple contract but the iPhone maker could be working to help its suppliers.