Stefan Mileschin

Dialog faces night of the long knives

Yet another loyal Apple partner is suffering for failing to do what Apple told it.

Dialog saw its shares plummet by 19 percent after Apple announced that it is designing its own power management chips for next years batch of iPhones.

Apple has been telling its suppliers that they either have to slash costs or it will develop things inhouse. The policy has already had casualties with graphics chip maker Imagination and lead to a monumental spat with Qualcomm.

Jobs' Mob has realised that it is not going to keep its high profits as its iPhone cash cow dies. So what it wants is to push its margins by cutting costs. It has been strong arming its suppliers, many of whom became addicted to Apple’s custom at the expensive developing other customers.

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