In 2017, Dialog derived $1 billion of its revenue from its largest customer Apple, which accounts for over 75% of Dialog’s total revenue. Dialog’s 2018 revenue will not be affected by this agreement.
Dialog expects to start realizing revenue from Apple’s new contracts in 2019 and accelerating in 2020 and 2021. Dialog will supply power management, audio subsystem, charging and other mixed-signal ICs to the Cupertino-based tech behemoth.
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This deal is Apple’s major investment in an outside company in recent times. Last year-end, there were reports that Apple was in the process of designing power management ICs on its own. Dialog said that the proceeds from this transaction will be used to strengthen its balance sheet and growth opportunities across IoT, mobile, automotive and computing & storage markets.
This deal is targeted to close in the first six months of 2019, subject to regulatory approvals.
According to Techcrunch, Apple has also acquired a Denmark-based computer vision company Spektral recently. But it was not clear when this purchase actually happened. Spektral (formerly known as CloudCutout) was founded by Toke Jansen and Henrik Paltoft with the vision of becoming the standard software solution for removing the background of images.