“Shares in Dialog Semiconductor fell by 17 percent on Friday to a four-year low after the Anglo-German chipmaker said its main customer Apple would cut orders for its power-management chips by around 30 percent this year,” Reuters reports.
“The news also hit other European semiconductor stocks in Apple’s smartphone supply chain at the open before they recovered some of their trading losses,” Reuters reports. “Austria’s Ams AG shed 1.4 percent while STMicroelectronics fell by around 0.4 percent in Paris.”
“Dialog told investors on Thursday evening that Apple now planned to source the main power-management chips (PMICs) for one of its three new iPhone models from two suppliers instead of just from Dialog,” Reuters reports. “Baader Helvea analyst Guenther Hollfeder said the announcement was a surprise and reflected poor visibility in Dialog’s relationship with Apple, which accounted for 77 percent of group sales in 2017.”
Read more in the full article here.
MacDailyNews Take: Moral of the story: Don’t put all of your eggs in one basket.
SEE ALSO:
It’s getting even tougher to be an Apple supplier – April 19, 2017
My goodness. Easy come, easy go. Investors made their money and are now leaving like rats from a sinking ship. I’m glad I never got into buying into iPhone component companies. I’d never know when the sky is going to fall.
If 77% of your sales is from just one customer, that is really, really not good.
That’s the definition of “bulk risk”.