Apple chipmaker Dialog projects quarterly sales at low end of target

Dialog Semiconductor, which makes chips for iPhones, posted its preliminary revenue for the fourth quarter of 2018 on Monday.

Angela Lang/Techhnews

Dialog Semiconductor reported on Monday that its quarterly sales projection would be at the low end of its target.

The German chipmaker, which relies on Apple for about 75 percent of its revenue, said its preliminary revenue for the fourth quarter of 2018 was around $431 million — compared the guidance range of $430 million to $470 million given in October.

This comes less than two weeks after Apple posted a sales warning to investors regarding holiday sales. We’ve also got hints that its 2018 models (the XS, the XS Max and the XR) would be subject to production cuts and slashed prices in China.

Dialog’s shares initially dropped with the projection’s release, but then climbed in German trading, the Financial Times reported. The company was recently up 2.5 percent, cutting its 12-month loss to roughly 10 percent, the paper noted.

Neither Dialog nor Apple immediately responded to requests for comment.

In October, Apple made a deal to buy part of Dialog — whose processors have been used in iPhones since the first model in 2007 — for $600 million, with the deal expected to close in the first half of 2019.

A rumor that Apple would start making its own power management chips caused Dialog’s shares to tumble 18 percent back in 2017.

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