Apple chipmaker Dialog Semiconductor today said it expects quarterly sales to be at the bottom end of its target range after the iPhone manufacturer issued a shock profit warning.
Dialog reported preliminary revenue of roughly $431m (£336m) for the fourth quarter, which is at the lower end of its $430m to $470m forecast.
In October the UK-based chip manufacturer secured a $600m deal with Apple, which it now relies on for 75 per cent of its sales.
As part of the deal Apple gained some patents and a team of engineers from the chipmaker, as Dialog cemented a three-year deal to build chips for iPhone and iPad products.
But the tech giant issued a rare profit warning at the beginning of January, blaming weaker sales in China for the slowdown.
Suppliers have been feeling the squeeze after Apple cut its production orders for its latest models after lower-than-expected demands.
But despite the revised estimate, Dialog’s revenue forecast remains within its target range. The firm said it expects full-year revenue of $1.4bn, a year-on-year increase of seven per cent.
The update did not appear to concern investors, with shares in Dialog rising almost four per cent in morning trading.
The company said it will publish its audited full-year results on 6 March.