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Apple extends European operations with Dialog deal

(Image credit: Image Credit: Pio3 / Shutterstock)

Apple is buying Dialog Semiconductor for $600 million, Reuters (opens in new tab) reported today. Dialog Semiconductor is an Anglo-German company whose technology is at the heart of iPhone’s power management.

The deal will see Apple buying Dialog’s patents, as well as a team of 300 engineers. Most of them, according to Reuters, already worked on Apple chips. Apple is also getting its hands on Dialog offices in the UK, Italy and Germany.

Dialog Chief Executive Jalal Bagherli told Reuters he could now lead a “managed, smooth” transformation of the business as Dialog seeks “new opportunities in areas such as the Internet of Things that includes connected devices like home speakers, fitness trackers or smart watches.”

The company also said its 2018 revenue will not be affected, and that it will continue shipping current main power management integrated circuits to Apple.

However, the company’s shares saw a 34 per cent rise on Thursday, which is the highest they’ve been since 2002. Its shares have seen the lower end earlier this year, when Apple said it was planning on using another supplier for its chips.

Dialog expects it will see anywhere between a third, and a half (35 – 40 per cent) of its total revenue to come from Apple, by 2022. That is down from 75 per cent this year. Layoffs are also in the cards, as headcount is expected to drop to 1800.

Image Credit: Pio3 / Shutterstock

Sead Fadilpašić is a freelance tech writer and journalist with more than 17 years experience writing technology-focussed news, blogs, whitepapers, reviews, and ebooks. And his work has featured in online media outlets from all over the world, including Al Jazeera Balkans (where he was a Multimedia Journalist), Crypto News, TechRadar Pro, and IT Pro Portal, where he has written news and features for over five years. Sead's experience also includes writing for inbound marketing, where he creates technology-based content for clients from London to Singapore. Sead is a HubSpot-certified content creator.