Dialog Semiconductor share price drops 35 per cent after Bankhaus Lampe stokes Apple fears

Caitlin Morrison
Follow Caitlin
Dialog Semiconductor makes chips for iPhones (Source: Getty)

Shares in chip-maker Dialog Semiconductor dropped by a third in morning trading, after German private bank Bankhaus Lampe said Apple could move business away from the firm.

The stock has recovered somewhat, and is now down 15 per cent compared to yesterday's close price - but the German tech company said there is no reason for investors to be concerned.

Bankhaus Lampe today moved Dialog to a "sell" recommendation from "hold", warning that Apple could begin making its own chips, which was quickly followed by a sharp decline in Dialog's share price.

However, the company said in a statement this afternoon that it "knows of no business reason for this movement and confirms that it remains comfortable with its guidance for the first quarter and in its prospects for the year".

"The company notes the level of visibility into the design cycle of its leading customers remains unchanged and the business relationships are in line with the normal course of business," the group added.

Dialog's wobble follows similar unrest at UK group Imagination Technologies, which last week saw its market capitalisation more than halved after the iPhone maker said it would no longer need to use its designs.

Shares in Imagination dropped by 70 per cent in the wake of an announcement that Apple will no longer need to use its intellectual property in as little as 18 months' time.

It's not the first time that Apple has had a major impact on Dialog's share price. When the Californian tech giant's third quarter results in 2015 rattled investors, shockwaves were felt across the globe, and Dialog's stock dropped by more than five per cent.

Shares dropped by one third in early trading today (Source: Investing.com)

Related articles