Apple supplier Dialog Semi hit revenue target despite iPhone slump in China

“Chip designer Dialog Semiconductor said on Monday that it managed to hit its fourth-quarter revenue guidance despite a slump in iPhone sales at its main customer Apple,” Reuters reports.
“Shares in the Anglo-German company jumped 4 percent as investors credited the company’s resilience at a time when other Apple suppliers have slashed or missed their targets,” Reuters reports. “The shares had fallen in early trade after Dialog said unaudited preliminary sales came in at $431 million in the fourth quarter, the low end of a guidance range of $430 million-$470 million, but they rebounded on the broader view that Dialog had weathered Apple’s recent sales slowdown well.”
“Around 75 percent of Dialog’s business is supplying power-management chips to Apple, which warned in November of slow year-end sales and on Jan. 3 issued its first sales warning in 12 years, blaming weaker iPhone sales in China,” Reuters reports. “CEO Jalal Bagherli said in November that Dialog was seeing less of an impact than other suppliers because its power-management chips were used across a broad range of Apple devices and not just in iPhones.”
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MacDailyNews Take:
Lower than anticipated iPhone revenue, primarily in Greater China, accounts for all of our revenue shortfall to our guidance and for much more than our entire year-over-year revenue decline. In fact, categories outside of iPhone (Services, Mac, iPad, Wearables/Home/Accessories) combined to grow almost 19 percent year-over-year… Our non-iPhone businesses have less exposure to emerging markets, and the vast majority of Services revenue is related to the size of the installed base, not current period sales. – Apple CEO Tim Cook, letter to investors, January 2, 2019
SEE ALSO:
Dialog Semi says not seeing hit to demand from Apple – November 14, 2018
Apple, Dialog Semi ink $600 million licensing deal for key iPhone tech – October 11, 2018
Dialog Semi sinks 17 percent after warning Apple will bifurcate iPhone power-management chip orders – June 1, 2018
Shares in chipmaker Dialog plunge over Apple contract doubts – April 11, 2017
Apple supplier Dialog partners with wireless charging company Energous – December 15, 2016