Apple chipmaker struggles to deliver promised earnings

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Dialog Semiconductor didn't make as much money as hoped.
Photo: Ste Smith/Cult of Mac

Dialog Semiconductor, the European chipmaker that Apple has been working with since the first iPhone, has reported disappointing earnings for the fourth quarter of 2018.

The firm, which Apple invested $600 million in last year, rakes in about 75 percent of its revenue supplying power management chips for iOS devices. Dialog’s shares fell more than 3 percent with the earnings news.

Reporting its earnings today, Dialog revealed that it had brought in $431 million in revenue in Q4. While this number was within its earnings guidance, it was at the very bottom end. Dialog Semiconductor previously suggested it would make between $430 million and $470 million for the quarter.

Dialog isn’t the only Apple supplier hurt by falling iPhone sales. Recently, Apple’s largest manufacturing partner, Foxconn, reported disappointing earnings. Its revenue for December fell 8.3 percent year-over-year. A large number of other companies which work with Apple have also been hurt.

Apple has seen billions of dollars wiped off its value in the past several months. AAPL is currently trading at $152.29. That’s considerably less than the $232.07 it traded at back in early October. Right now, Apple’s market cap is $720.3 billion. That’s less than the $789.25 billion of Microsoft, the $802.18 billion of Amazon, and the $737.3 billion of Google.

Will things turn around in 2019? We’re eager to see. For the first time in years, it seems that Apple needs to seriously reconsider its sales strategy to claw its way back to the top of the tech world.

Source: Money Control