Apple has confirmed plans to begin building its own power management chips for future iPhones, according a report in The Financial Times, citing an investor warning from Dialog Semiconductor predicting lower revenue growth.
Dialog has been making iPhone power management chips for several years, however Apple, who is the chipmaker’s largest customer and accounts for more than 75% of the company’s revenue, has decided to order 30 percent fewer chips this year, according to a statement from the company.
Dialog CEO Jalal Bagherli also added that he also expected to see a similar reduction in demand next year, but wouldn’t speculate beyond that.