Published in Mobiles

Dialog does better than expected

by on07 October 2016

But Apple's iPhone 7 was not responsible

The Tame Apple Press has created a fake rise in the price of Apple shares by claiming that the success of its favourite toy maker is responsible for a surprise rise in the profits of the German Dialog Semiconductor.

Thanks to their sterling efforts in trying to make the iPhone 7 look like it is a winner, Apple’s share price went up and there was lots of stories about how "Apple now wanted the iPhone 7 to help wrest market share from rival Samsung Electronics Co Ltd and limit an expected decline in annual revenue. "

While it was true that Dialog Semiconductor, which makes integrated power management, AC/DC power conversion, solid state lighting and Bluetooth low energy wireless technology, gear reportd some damn fine results, increasing orders from Apple was not the reason.

Dialog reported preliminary Q3 2016 revenue of approximately $345 million, 13 percent above the mid-point of the July Q3 2016 outlook range and five percent above Q3 2015. On 28 July 2016, Dialog indicated that it expected revenue in Q3 2016 to be in the range of $290 to $320 million.

However, it is not true that the reason for the book is due to increased iPhone 7 orders. The company said that the higher than expected preliminary revenue reported today is partially the result of delivery dates for certain Q4 Mobile Systems orders being pulled forward into Q3 to accommodate a public holiday in China during the first week of October.

In fact, Dialog did not mention Apple in its announcement at all. Although to be fair, Apple counts for 80 percent of its business. It might be that we are seeing some more ordering chicanery from Apple to make it look like the first quarter of iPhone 7 sales were in fact higher than they are. We saw this last year when Apple launched simultaneously in China to claim that its opening quarter’s sales were huge.

Dialog will review its Q4 2016 and full year guidance during the coming weeks. The company is currently finalising the financial accounts for Q3 2016 and will publish full results on Thursday, 3 November 2016.

Last modified on 07 October 2016
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