Dialog Semiconductor is “comfortable with its guidance” and its relationship with its key customer Apple has not changed, the company said, after fears that Apple may be planning to replace Dialog’s chips in its future products caused its shares to drop more than a third on Tuesday morning.

Analysts at Bankhaus Lampe said today it had “strong evidence that Apple is developing its own [power management chips] and intends to replace the chip made by Dialog at least in part”.

However, in a statement to the market, Dialog said:

The Company 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.

Apple has been increasingly moving to reduce reliance on third party suppliers and build the core technologies at the heart of its products in-house. Last week it announced plans to stop using technology developed by fellow British chipmaker Imagination Technologies, prompting shares in the UK group to fall more than 60 per cent.

Shares in Dialog have recovered gradually since late morning, but at publication time it was still the worst-performing company in the Europe-wide Stoxx 600 index, down 14.7 per cent at €40.74

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