Dialog Semi Falls on Report of Delay in New Apple IPhone

Dialog Semiconductor Plc (DLG) fell the most in three weeks after the Commercial Times reported that a new IPhone mobile device from Apple Inc. (AAPL), the German company’s biggest customer, may be released later than scheduled.

Dialog Semiconductor dropped as much as 4.7 percent to 10.53 euros, the steepest intraday decline since June 21, and was trading down 1.4 percent at 12:24 p.m. in Frankfurt, valuing the company at 741.3 million euros ($975 million). Trading volume was 43 percent of the three-month daily average.

“Any kind of negative news from Apple will affect how people think of Dialog’s stock” because of the U.S. company’s role in the German manufacturer’s sales, Ali Farid Khwaja, a London-based analyst at Berenberg Bank AG, said by phone.

Apple may delay the introduction of the iPhone 5S until the end of 2013 after the design was changed to feature a bigger screen, the Taipei-based newspaper reported today. Cupertino, California-based Apple has been embroiled in lawsuits involving patent disputes, and the iPhone has lost ground to competitors in consumer satisfaction. Shares of Kirchheim, Germany-based Dialog Semiconductor have meanwhile lost 18 percent this year.

“In the last six months, the news was mostly negative, so Dialog’s stock has been under pressure lately,” Khwaja said.

The German manufacturer agreed to buy U.S. power-supply integrated-circuit maker IWatt Inc. (IWAT) for $345 million earlier this month in a step toward diversifying its product line. The acquisition gives Dialog Semiconductor access to a market that may grow to $11.5 billion by 2015, according to estimates by research Gartner Inc. that were cited by Dialog.

To contact the reporter on this story: Weixin Zha in Frankfurt at wzha2@bloomberg.net

To contact the editor responsible for this story: Angela Cullen at acullen8@bloomberg.net

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