Advertisement
Global  

“News neutrality by unbiased coverage”
One News Page
> >

Apple Acquires iPhone Power Management Technology in $600 Million Deal With Chipmaker Dialog

MacRumours.com Thursday, 11 October 2018 ()
Apple has finalized a business agreement with Dialog Semiconductor to license its iPhone power management technology and transfer technical assets, in a deal worth $600 million.

As part of the agreement, Apple will acquire some of the Anglo-German chipmaker's assets and 300 of its R&D staff, which is around 16 percent of Dialog's workforce. Dialog's shares rose as much as 34 percent on the news, their highest since 2002.
Announcing the deal on Thursday, Dialog said Apple would pay it $300 million in cash for the transaction and prepay a further $300 million for products to be delivered to Apple over the next three years. Commenting on the news, Apple SVP Johny Srouji told TechCrunch:Dialog has deep expertise in chip development, and we are thrilled to have this talented group of engineers who've long supported our products now working directly for Apple. Our relationship with Dialog goes all the way back to the early iPhones, and we look forward to continuing this long-standing relationship with them.

Dialog shares took a tumble in late 2017 when the company admitted that Apple, its top customer, could build its own power management chips for future iPhones without the chipmaker's help.

The admission came as a serious blow to Dialog, which exclusively designs the current main power management chip for iPhone, iPad, and Apple Watch models. Apple reportedly accounted for nearly three quarters of Dialog Semiconductor's revenue in 2016.

However, today's agreement gives Dialog time to reduce its dependence on Apple, which the chipmaker predicts will account for three-quarters of its sales over the course of this year.

Dialog CEO Jalal Bagherli told Reuters the chipmaker could now look forward to a "managed, smooth" transformation of the business as it seeks new opportunities for growth in other markets that could include home speakers, fitness trackers or smart watches.

The deal represents a huge investment for Apple, which will take over Dialog facilities in Italy, Germany, and the U.K., expanding its chip research and development significantly across Europe. Subject to regulatory approval, the deal is expected to close in the first half of 2019.Tag: Dialog

Discuss this article in our forums
0
shares
ShareTweetSavePostSend
 
Credit: Wochit - Published < > Embed
News video: Apple Makes Deal To License IP And Acquire Talent From Chip Firm

▶ Apple Makes Deal To License IP And Acquire Talent From Chip Firm 00:37

Apple has quietly been putting considerable effort into building faster and more efficient chips. Tech Crunch reports the new chips help differentiate its hardware from the rest of the pack. Apple is paying $300 million in cash to buy a portion of Dialog Semiconductor. Dialog is a chipmaker based...

You Might Like


Recent related news from verified sources

Apple buys iPhone power management technology from British chip maker in £450m deal

Apple buys iPhone power management technology from British chip maker in £450m deal
The US technology giant will acquire patents and staff from Reading-based Dialog Semiconductor. Since the first iPhones a decade ago, Apple has used Dialog chips...
MailOnline - Money

Apple brings iPhone power management in-house with $600M Dialog Semiconductor deal

Apple is investing a total of $600 million to license patents, purchase assets and transfer employees from Dialog Semiconductor, a European chipmaker and...
AppleInsider - Computer Industry

Apple signs $600 million deal with European chipmaker Dialog

Apple is buying part of Dialog Semiconductor, a chipmaker based in Germany. The iPhone manufacturer is interested in Dialog's power-management technology and has...
betanews - Technology

Apple gets critical iPhone technology in $600 million Dialog deal

Apple Inc is buying the power-management technology at the heart of its iPhones in a $600 million deal with Dialog Semiconductor that also secures the...
Reuters - Business


Tweets about this


Recent related videos from verified sources

50 Cent Signs up to $150 Million Deal With Starz [Video]50 Cent Signs up to $150 Million Deal With Starz 01:23

50 Cent Signs up to $150 Million Deal With Starz The rapper signed a three-series commitment where G-Unit Television & Film will develop exclusive content for Starz. The significance of the deal is..

Credit: Wibbitz Top Stories - Published

Apple Strikes Million Dollar Deal [Video]Apple Strikes Million Dollar Deal 00:35

Apple is to pay $600 million to buy parts of its chip supplier Dialog Semiconductor. The deal includes patents, a team of 300 engineers, and Dialog offices in the UK, Italy, and Germany. It's a big..

Credit: Wochit - Published

Apple gets critical iPhone technology in $600 mln Dialog deal [Video]Apple gets critical iPhone technology in $600 mln Dialog deal 00:57

Apple is taking control over the power-management technology at the heart of its iPhones in a $600 million deal with Dialog Semiconductor that also secures the German-listed company's role as a..

Credit: Rumble - Published

Orlando airport and utility aim for $59 million power deal. [Video]Orlando airport and utility aim for $59 million power deal. 00:30

Orlando International Airport and Orlando Utilities Commission negotiate a $59 million deal for solar, emergency and other power needs.

Credit: NYDN tronc - Published

Environmentally friendly: One News Page is hosted on servers powered solely by renewable energy
© 2018 One News Page Ltd. All Rights Reserved.
About us  |  Contact us  |  Disclaimer  |  Press Room  |  Terms & Conditions  |  Content Accreditation
 RSS  |  News for my Website  |  Free news search widget  |  Contact us  |  DMCA / Content Removal  |  Privacy & Data Protection Policy
How are we doing? Send us your feedback  |   LIKE us on Facebook   FOLLOW us on Twitter  •  FOLLOW us on Pinterest