Apple shifting orders for iPhone power management chips this year
Apple has been working to internal the design and production of some crucial iPhone components such as the display, the graphics processor and the power management chip. Some of these efforts were spurred by beefs with existing suppliers while others are intended to push costs down in the long run.
In the case of the power management chip, we’re now learning from Reuters that German supplier Dialog is expecting Apple to order 30 percent fewer chips this year as opposed to last. It is now expected to share orders with another supplier to serve chips to one upcoming iPhone model of three this fall.
While the company has cut its annual earnings forecast by 5 percent, it still expects to make out a gain from 2017. Still, the company expects more cuts in 2019.
Investors dragged Dialog’s share price down about 4 percent late today. Analysts believe that half of the company’s revenues come from business with Apple.