Apple and Dialog are set to continue their long-term relationship for several more years. Both sides confirmed an agreement worth $300 million that includes licenses and employees.
While the chipmaker will remain independent, Apple acquired 300 employees. Dialog gets to keep Apple’s contract for chips relating to power management, charging, and audio. It makes sense for both sides as Dialog’s been working with Apple since the original iPhone was released in 2007.
The deal between Apple and Dialog isn’t capped at $300 million, though. Based on the press release, it seems like there’s another $300 million on hold. That’ll be used for research, development, and manufacturing as necessary.
It’s another decision in Apple’s effort to cut down on outside assistance. There’s no doubt the Cupertino-based company wants to develop and manufacturer internally. By doing that, the business depends less on suppliers and increases profit margins on all products.
From displays to chips, Apple desires a future where it supplies a lot of the necessary items to itself.
Dialog made it clear that there will be a focus on connected devices, home automation, storage, and automobiles.
We’ll see how this deal shakes out for both sides, but it comes across as a win-win. Apple builds an even stronger relationship with a trusted partner, and Dialog gains the cash it needs to continue innovating. Now it’s a matter of implementing new technologies for Apple’s portfolio.
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