Shares in Dialog Semiconductor have slumped after the iPhone power chip maker raised the prospect of becoming the latest British firm to lose business from Apple.
The Reading-headquartered company admitted for the first time that Apple has the “resources and capability” to design its own power management chips, sending shares down by 20pc on Monday.
The announcement compounded a blow last week when the Japanese newspaper Nikkei reported that Apple is considering ditching Dialog, which had also caused a dramatic share price fall. Since last Thursday, shares in the Frankfurt-listed company have fallen by a third.
Dialog has designed the iPhone’s power chips for a decade and relies on Apple for around three quarters of its revenue.
But investors have been spooked by reports in recent months that the US tech giant has been poaching staff from Dialog. Although Monday’s market announcement was designed to clear the air, the confirmation that Apple has a team capable of building its own chips failed to invoke confidence.
Apple has been trying to reduce its reliance on suppliers as it seeks greater control of the iPhone production process and amid turbulence in the microchip industry, recently ditching British graphics chip designer Imagination Technologies.