Apple is designing its own main power management chips for use in iPhones as early as in 2018, cutting its dependence on Dialog Semiconductor, industry sources told the Nikkei Asian Review. The news sent Dialog's share price almost 20 percent lower.
This is part of Apple's strategy to reduce its dependence on suppliers and design more of its own chips, in order to differentiate its products further. A decision earlier this year to not work with Imagination Technologies on graphics processors anymore led to Imagination being put up for sale.
The main power management chip controls the iPhone's charging function, battery management, and energy consumption. "Based on Apple's current plan, they are set to replace partially, or around half of its power management chips to go into iPhones by itself starting next year," said the unnamed source.
Another person said Apple was indeed developing its own power management chips for iPhones but the time frame was less certain and could be delayed to 2019.
Apple's main power management chips for the iPhone, iPad and Apple Watch are now exclusively designed and made by Dialog, according to Credit Suisse. Apple accounted for 74 percent of Dialog's revenue in 2016.
