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
81 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
81 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
81 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
81 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
81 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
81 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

iPhone 17 Pro 34ths Perspective

iPhone 17 Pro Launching Later This Year With These 10 New Features

Sunday March 23, 2025 10:00 am PDT by
While the iPhone 17 Pro and iPhone 17 Pro Max are not expected to launch until September, there are already plenty of rumors about the devices. Below, we recap key changes rumored for the iPhone 17 Pro models as of March 2025: Aluminum frame: iPhone 17 Pro models are rumored to have an aluminum frame, whereas the iPhone 15 Pro and iPhone 16 Pro models have a titanium frame, and the iPhone ...
iOS 18

iOS 18.4 Expected Next Week - Here Are the Release Notes

Friday March 28, 2025 2:01 pm PDT by
With the second release candidate of iOS 18.4 that Apple seeded out today, the company finally provided us with release notes that give a full rundown on what to expect. There's an Apple Vision Pro app, new Apple Intelligence features for notifications and additional language support, plus an Apple News Food feature for Apple News+ subscribers, and several updates that should improve the...
Magic Mouse Green

What to Expect From the Magic Mouse 3

Saturday March 29, 2025 10:15 am PDT by
Apple is reportedly working on a new Magic Mouse. Below, we recap what to expect. The two key rumors for the Magic Mouse 3 so far include a relocated charging port, along with a more ergonomic design. It was briefly rumored that the Magic Mouse 3 would also feature voice control, but that was misinterpreted information. Relocated Charging Port While the Magic Mouse switched from...
top stories 2025 03 29

Top Stories: WWDC 2025 Announced, iPhone 17 Pro and iOS 19 Rumors, and More

Saturday March 29, 2025 6:00 am PDT by
Apple's big developer event is a little over two months away, and rumors about what we can expect to see in Apple's next major operating system updates are becoming increasingly frequent. A public release of iOS 18.4 is also imminent with a number of updates and improvements, although we won't be getting the major Apple Intelligence Siri upgrades that had reportedly been planned for this...
Foldable iPhone 2023 Feature Homescreen

Six Things to Know About Apple's Upcoming Foldable iPhone

Friday March 28, 2025 3:54 pm PDT by
We've been hearing rumors about a foldable iPhone for almost a decade now, but it looks like we might finally see the device come to fruition in 2026. We're going to be waiting many more months for the foldable iPhone, but so far we're hearing good things. Apple wants to make it creaseless. It's taken Apple multiple years to design a foldable iPhone that it's satisfied with because Apple ...
iOS 19 visionOS UI Elements

Apple Codename Provides Clue About iOS 19's Rumored New Design

Sunday March 30, 2025 6:40 am PDT by
Multiple sources have claimed that iOS 19 will introduce a new design with more translucent buttons, menus, notification banners, and more, and there is now another clue that points towards this glass-like appearance. Bloomberg's Mark Gurman today said the new design project is codenamed "Solarium" internally. A solarium is a room with glass walls that allow in plenty of sunlight, so this...
Facebook Feature

Facebook's New iPhone App Feature Turns the Clock Back to 2007

Thursday March 27, 2025 1:59 pm PDT by
In the mid-to-late 2000s, Facebook was all about staying connected with friends and family. However, as the social media platform added new features and grew over time, that core experience began to get drowned out. That changes starting now, according to Meta, which today introduced a new feature that will "bring back the joy" of classic Facebook. Specifically, Meta has redesigned the...
Foldable iPhone 2023 Feature Homescreen

iPhone Foldable Display Said to Feature iPad-Style 4:3 Aspect Ratio

Friday March 28, 2025 3:44 am PDT by
Apple's upcoming "iPhone Fold" will feature a foldable screen with a 4:3 aspect ratio, according to a Chinese leaker who previously leaked the book-style device's display dimensions. The Weibo-based account Digital Chat Station claims that Apple will adopt a "roughly" 4:3 aspect ratio on the inner display in order to achieve consistency between the outer display, as well as to ensure parity...