FRANKFURT - Dialog Semiconductor forecast revenues will drop this year as it completes a $600 million transfer of programmers and patents to iPhone maker Apple, but still won market plaudits as it said its remaining business would grow strongly.
The Anglo-German chip designer struck a deal in October to reduce its exposure to Apple, which accounts for three-quarters of revenue, helping it weather a downturn in iPhone sales better than other suppliers to the smartphone maker. To tap new growth opportunities, Dialog is pushing into the consumer Internet of Things that spans wearable and household devices. It is also ramping up mixed-signal integrated circuits, rapid smartphone charging and low-energy bluetooth products.
He declined to give revenue guidance for 2020, but said Dialog had “a lot of engines of growth” that would have an impact going forward.Dialog earlier reported a 7 percent decline in fourth-quarter revenue, at the lower end of its guidance. Dialog expects the smaller business that will remain after the Apple deal to show strong growth in 2019, weighted toward the second half.
Some industry players have forecast a quick, V-shaped rebound although continuing weakness in measures of industrial activity such as purchasing managers indexes and inventory builds suggest recovery may be slower in coming.
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