Shares of Anglo-German manufacturer Dialog Semiconductor fell 20 percent on Tuesday morning after a financial analyst warned the company may lose a contract with the U.S. tech giant Apple.
Bankhaus Lampe, a private bank in Germany, downgraded the manufacturer to a “sell” rating given that Apple is working on its own battery-saving chip for the iPhone – which could replace Dialog’s power circuits as early as 2019, according to Reuters.
Earlier this month, the shares of Imagination Technologies, a U.K. chip designer, sank more than 60 percent after Apple said it would cease a contract to use its products. Dialog Semiconductor and Apple were not immediately available for comment when contacted by CNBC.
