Apple supplier Dialog Semiconductor reported on Monday that its projected sales for the fourth quarter of 2018 would be at the low end of its original target (via CNET).

dialog semiconductor iphone
The German chipmaker, whose partnership with Apple makes up around 75 percent of its revenue, said its preliminary revenue for Q4 2018 was approximately $431 million. That figure only just falls into the guidance range of $430 million to $470 million the company reported in October.

The news comes just two weeks after Apple lowered its own revenue guidance by up to $9 billion for the first quarter of its 2019 fiscal year.

Apple CEO Tim Cook offered up a number of explanations for the decline, including the timing of the iPhone XS, XS Max, and XR launch compared to the timing of the iPhone X launch last year, a slowing Chinese economy, and the company's $29 battery replacement program, all of which led to fewer iPhone upgrades than expected.

Last October, Apple agreed to a business arrangement with Dialog to license its iPhone power management technology and transfer technical assets, in a deal worth $600 million. Dialog's shares rose as much as 34 percent on the news, their highest since 2002.

As part of the agreement, Apple acquired some of the Anglo-German chipmaker's assets and 300 of its R&D staff, or around 16 percent of Dialog's workforce. The deal represents a huge investment for Apple, which will take over Dialog facilities in Italy, Germany, and the U.K., expanding its chip research and development significantly across Europe. Subject to regulatory approval, the deal is expected to close in the first half of 2019.

The agreement followed a report earlier the same month claiming Apple would design its own power management chips as early as 2018, which came as a serious blow for Dialog, the exclusive designer of the current main power management chip for iPhone, iPad, and Apple Watch models.

Dialog's shares initially dropped on news of today's revenue projection, but then climbed in German trading, according to the Financial Times. The company was recently up 2.5 percent, cutting its 12-month loss to roughly 10 percent, said the paper.

Tag: Dialog

Top Rated Comments

maflynn Avatar
68 months ago
I think Cook's hubris and misjudging the iPhone's price elasticity (people are less and less willing to spend > 1,000 for a phone every year), is catching up to him. They were all in on the iDevices to the detriment of the Mac line that they're scrambling now to roll out new machines, yet marketshare is decreasing in that sector for them as well.
Score: 6 Votes (Like | Disagree)
maflynn Avatar
68 months ago
People buy phones less often, so the solution is to increase the price of the phones, ending in the same economical outcome.
I think that move is purely short term, yse they're making profits, but at the expense of future sales. They can't keep raising the price to make up for less units sold, and that's my point. They misjudged the price elasticity, more so in other countries. They're wanting to sell phones in india but near the same price point, yet few people are buying them, because many people just don't have that much discretionary income to justify that high price.
Score: 5 Votes (Like | Disagree)
Scottsoapbox Avatar
68 months ago
Have to disagree...
The CEO doesn't have anything to do with that.
A) The CEO takes credit when things are good that are beyond their control so it's fair that the reverse is true.

B) Cook makes millions and millions of dollars so he should be held to a vey high standard. Including looking for additional revenue sources beyond the iPhone.

If the CEO doesn't matter, let's pay some random MBA $100K to keep the seat warm and pass the savings onto the shareholders.
Score: 4 Votes (Like | Disagree)
realeric Avatar
68 months ago
The only person who doesn’t know why is Mr Cook. Apple needs new CEO.
Score: 4 Votes (Like | Disagree)
Count Blah Avatar
68 months ago
Have to disagree. Peak smartphone sales were in 2016. Although delayed (Apple kept increasing their sales after that), that peak might have something to do with it. The smartphone market is saturated and people are hanging onto them longer - just as occured in the PC market years ago.

The CEO doesn't have anything to do with that.



The Xr ($749) is $50 cheaper than the 8 Plus was last year. Why the $1300?
Because the poster doesn’t want something that barely above 720p resolution? Just a guess
Score: 2 Votes (Like | Disagree)
Sasparilla Avatar
68 months ago
The only person who doesn’t know why is Mr Cook. Apple needs new CEO.
Have to disagree. Peak smartphone sales were in 2016. Although delayed (Apple kept increasing their sales after that), that peak might have something to do with it. The smartphone market is saturated and people are hanging onto them longer - just as occured in the PC market years ago.

The CEO doesn't have anything to do with that.

I need a new iPhone.
I’m not buying one bc I’m not down to spend $1300 on an iPhone...
The Xr ($749) is $50 cheaper than the 8 Plus was last year. Why the $1300?
Score: 2 Votes (Like | Disagree)

Popular Stories

reset password request iphone

Warning: Apple Users Targeted in Phishing Attack Involving Rapid Password Reset Requests

Tuesday March 26, 2024 4:34 pm PDT by
Phishing attacks taking advantage of Apple's password reset feature have become increasingly common, according to a report from KrebsOnSecurity. Multiple Apple users have been targeted in an attack that bombards them with an endless stream of notifications or multi-factor authentication (MFA) messages in an attempt to cause panic so they'll respond favorably to social engineering. An...
iPhone Home Screen Gradient Blank Spaces 1

Sources: iOS 18 Lets Apps Be Placed Anywhere on Home Screen Grid

Sunday March 24, 2024 1:33 pm PDT by
iOS 18 will give iPhone users greater control over Home Screen app icon arrangement, according to sources familiar with the matter. While app icons will likely remain locked to an invisible grid system on the Home Screen, to ensure there is some uniformity, our sources say that users will be able to arrange icons more freely on iOS 18. For example, we expect that the update will introduce...
iPad Pro 2024 Landscape Camera Feature

New iPad Pro Again Rumored to Feature Landscape Front-Facing Camera

Monday March 25, 2024 5:43 am PDT by
The next-generation iPad Pro will feature a landscape-oriented front-facing camera for the first time, according to the Apple leaker known as "Instant Digital." Instant Digital reiterated the design change earlier today on Weibo with a simple accompanying 2D image. The post reveals that the entire TrueDepth camera array will move to the right side of the device, while the microphone will...
sonoma desktop wwdc

Apple Releases macOS Sonoma 14.4.1 With Fix for USB Hub Bug

Monday March 25, 2024 10:10 am PDT by
Apple today released macOS Sonoma 14.4.1, a minor update for the macOS Sonoma operating system that launched last September. macOS Sonoma 14.4.1 comes three weeks after macOS Sonoma 14.4. The ‌‌‌‌macOS Sonoma‌‌ 14.4‌.1 update can be downloaded for free on all eligible Macs using the Software Update section of System Settings. There's also a macOS 13.6.6 release for those who...
Generic iOS 18 Feature Purple

iOS 18 Will Finally Bring This Android Feature to iPhone

Monday March 25, 2024 6:42 am PDT by
iOS 18 will allow iPhone users to place app icons anywhere on the Home Screen grid, according to sources familiar with development of the software update. This basic feature has long been available on Android smartphones. While app icons will likely remain locked to an invisible grid system on the Home Screen, our sources said that users will be able to arrange icons more freely on iOS 18....
maxresdefault

Apple Announces WWDC 2024 Event for June 10 to 14

Tuesday March 26, 2024 10:02 am PDT by
Apple today announced that its 35th annual Worldwide Developers Conference is set to take place from Monday, June 10 to Friday, June 14. As with WWDC events since 2020, WWDC 2024 will be an online event that is open to all developers at no cost. Subscribe to the MacRumors YouTube channel for more videos. WWDC 2024 will include online sessions and labs so that developers can learn about new...
apple maps 3d feature

Apple Maps May Gain Custom Routes With iOS 18

Tuesday March 26, 2024 3:10 pm PDT by
Apple may be planning to add support for "custom routes" in Apple Maps in iOS 18, according to code reviewed by MacRumors. Apple Maps does not currently offer a way to input self-selected routes, with Maps users limited to Apple's pre-selected options, but that may change in iOS 18. Apple has pushed an iOS 18 file to its maps backend labeled "CustomRouteCreation." While not much is revealed...
iphone reasons to upgrade

Apple Outlines 'Reasons to Upgrade' Your iPhone on New Website

Monday March 25, 2024 12:53 pm PDT by
Apple today added a "Why Upgrade" section to its website, which is aimed at encouraging customers with older iPhones to upgrade to a newer model. The website allows customers to compare the iPhone 11, 11 Pro, 11 Pro Max, 12, 12 mini, 12 Pro, and 12 Pro Max to the iPhone 15, iPhone 15 Plus, iPhone 15 Pro, or iPhone 15 Pro Max. Each comparison shows what new features someone with an older...