Dialog Semiconductor, chip supplier to Apple Inc.’s products, ended up falling to the bottom of Stoxx 600 on Monday morning. This happened after the supplier admitted that its biggest customer might begin designing its own chips.
Shares in the Anglo-German firm fell more than 18 percent during mid-morning European trade. This fall added to the decline of the same value which happened last Thursday. A news report circulated last Thursday claiming that Apple will be designing its own iPhone chips beginning early next year.
Apple is Dialog’s biggest customer. The supplier provides chips for iPhones, iPads, and watches. It then admitted in a statement on Monday that there is a possibility that the U.S. tech giant will be moving its chip design in-house.
“Although Dialog expects to remain Apple’s main supplier of power management integrated circuit (PMIC) designs, Dialog recognizes that the company has the resources and capability to internally design a PMIC and could potentially do so in the next few years,” the chip-maker said.
It then back-tracked and stated that Dialog is not expecting to lose its Apple power chip business next year.
Comments from Dialog’s chief executive Dr. Jalal Bagherli came out wherein he said that it could take some time before Apple’s strategy for 2019 can be understood.
Dialog Semiconductor was able to set a record for the company with their 2017 third-quarter revenue of $363 million.
Apple Pays Ireland
Apple had an agreement with the European Union today. According to the agreement, the U.S. electronics giant will have to begin depositing €13 billion ($15.4 billion) in back taxes which was ordered to be paid to Ireland last year. This happened after the decision to shut down tax shelter policies and profit offshoring.
Despite the ruling being finalized last year, August 2016 to be exact, Ireland has held off of collecting the money.
The country was known for using low tax rates in order to encourage domestic investment from foreign corporations. This practice ended up making companies, such as Apple, using Ireland as tax shelter.
The companies were found paying tax for as low as 0.005 percent on all European profits from 2003 to 2014. This was done successfully due to subsidiaries and shell companies created for mere collection and maintenance of offshore revenue.
“We have now reached agreement with Apple in relation to the principles and operation of the escrow fund,” said finance minister Paschal Donohoe. “We expect the money will begin to be transmitted into the account from Apple across the first quarter of next year.”
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