- Lower forecast adds to evidence iPhone sales may be cooling
- Dialog's Atmel deal at risk after rival suitor emerges
Dialog Semiconductor Plc, the chipmaker whose biggest client is Apple Inc., sank in Frankfurt trading after cutting its revenue forecast for the fourth quarter on weaker sales to makers of mobile phones.
Sales in the quarter will be $390 million to $400 million, below its previous forecast of $430 million to $460 million, the Reading, England-based company said in a statement Tuesday. Dialog, which has agreed to buy Atmel Corp., plunged 17 percent to 26.55 euros at 9:11 a.m. Before today, the stock had risen 8.9 percent this year, giving the company a market value of 2.49 billion euros ($2.8 billion).
The forecast adds to evidence that sales of Apple’s flagship product, the iPhone, have peaked. Analysts have predicted in the past few weeks that sales of the iPhone will drop next year, and sales of the iPad tablet computer already are declining. Dialog makes chips for both devices.
Apple accounts for about 78 percent of Dialog’s revenue, according to data compiled by Bloomberg. The Atmel takeover will help Dialog cut its reliance on the mobile-phone industry, Chief Executive Officer Jalal Bagherli said in September.
Atmel said Friday it received an unsolicited offer that may top Dialog’s bid, which was valued at $4.6 billion when it was announced.