(Reuters) — Apple is designing its own power-management chips for use in iPhones from as early as 2018, according to the business daily, Nikkei.
The news sank the shares of Apple’s current supplier, Dialog Semiconductors, in Frankfurt, even though Dialog said its business relationship with Apple hasn’t changed.
But it’s a good move for Apple, says Chief Strategy Officer & Head of Technology Research, GBH Insights’ Daniel Ives.
“So, I think there’s two sort of points to this. One is more control of just that eco system. It does take some of the middlemen out. And this is something we’ve seen on the graphics side over the last few years. But a lot of it is about more integration between hardware and software and differentiation and more control as they compete with the likes of Samsung and Google down the road,” he said.
Apple did not immediately respond to a request for comment.
In April, Apple said it planned to replace graphics chip supplier Imagination Technologies. That sent the company’s London-listed stock down 70 percent in a single session. Imagination was subsequently sold off in two separate deals.
In the past dozen years, Apple has dropped several smaller chip suppliers, ultimately forcing them to merge with bigger rivals.