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
45 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
45 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
45 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
45 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
45 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
45 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

home app ios 16

Apple Confirms iPad Will No Longer Be Supported as a Home Hub in iOS 16

Wednesday June 22, 2022 12:38 pm PDT by
The iPad will no longer be able to be used as a home hub following the launch of iOS 16, iPadOS 16, macOS Ventura, and the HomePod 16 software this fall, Apple confirmed today. As discovered in iOS 16 code by MacRumors contributor Steve Moser, Apple says that the iPad will no longer be supported as a home hub. This information will be displayed in the Home app after updating to iOS 16.A home ...
apple ar headset concept 2

Apple CEO Tim Cook Hints at AR/VR Headset: 'Stay Tuned and You'll See What We Have to Offer'

Wednesday June 22, 2022 6:34 pm PDT by
CEO Tim Cook this week did an interview with China Daily, where he once again commented on on the future of augmented reality and hinted at Apple's work on an AR/VR headset. Render via designer Ian Zelbo Cook said that Apple is excited about the opportunities available with augmented reality, which is not too far off from prior comments that he's made, but he went on to say that people should ...
customize wallpaper setting ios 16

iOS 16 Beta 2 Tidbits: New Wallpaper Colors, Backup Over LTE, SMS Filtering and More

Wednesday June 22, 2022 2:16 pm PDT by
Apple today seeded the second betas of iOS 16 and iPadOS 16 to developers for testing purposes, and the new betas introduce new features and refine some of the changes that Apple made with the first iOS 16 release. Subscribe to the MacRumors YouTube channel for more videos. Lock Screen Photo Wallpaper Customization When customizing a photo on the Lock Screen, there are two new DuoTone and...
Shazam Music Recognition Control Center

iPhone's Built-In Music Recognition Feature Syncs With Shazam App on iOS 16

Tuesday June 21, 2022 7:37 am PDT by
Since the release of iOS 14.2 in 2020, the iPhone has included a built-in Music Recognition feature in Control Center powered by Shazam. And with iOS 16, and also the iOS 15.6 beta, the feature has received a small but useful upgrade. As noted by Twitter user @someone_andrew, songs identified with Music Recognition in Control Center finally sync with the Shazam app. It also remains...
2022 back to school apple

Apple Launches 2022 Back to School Offer: Up to $150 Gift Card With Mac or iPad

Friday June 24, 2022 5:08 am PDT by
Apple today launched its annual "Back to School" promotion for college/university students in the United States and Canada. This year's promotion offers a free Apple gift card with the purchase of an eligible Mac or iPad, rather than free AirPods like last year. Apple is also offering students 20% off AppleCare+ plans during the promotion. Apple is offering a $150 gift card with the purchase ...
ios 16 lock screen feature2

Apple Seeds Second Betas of iOS 16 and iPadOS 16 to Developers

Wednesday June 22, 2022 10:07 am PDT by
Apple today seeded the second betas of upcoming iOS 16 and iPadOS 16 updates to developers for testing purposes, with the updates coming two weeks after Apple unveiled the new software at WWDC and released the initial betas. Registered developers can download the iOS and iPadOS 16 profiles from the Apple Developer Center, and once installed, the betas will be available over the air. Given...
apple ar headset concept 1

Apple Rumored to Announce 'Game-Changer' AR/VR Headset in January 2023

Friday June 24, 2022 2:52 am PDT by
Apple is "likely" to announce its long-rumored mixed-reality headset as soon as January 2023, Apple analyst Ming-Chi Kuo has reiterated. Concept render based on purported leaked information by Ian Zelbo In a detailed post on Medium, Kuo explained that Apple's headset will be a "game-changer" for the augmented-reality and virtual-reality market. Describing some of the headset's...