Presumably they are looking at moving power management silicon in house as well to consolidate that advantage. At there scale, they will be getting custom silicon from Dialog already, but there's probably some comms/cost benefits to dealing with a department rather than an external company.
Apple starts a relationship with a company, the deal becomes the VAST MAJORITY of the company's revenue, the company wants to get out of the buisness of being an apple supplier, because IF they scale to that size and lose a contract, they have huge cuts to make. So apple comes in, buys a substantial part of the company, and now the company can continue to operate without fear of downsizing. Any downsizing will be apples doing not theirs.
The last consulting firm I worked for had over 70% of their revenue coming from two contracts, and neither contract used any of the tools or philosophies the consulting company claimed to espouse.
Ended up being the case that all the reasons I wanted to work there were just marketing messages and my sense of betrayal soured the relationship.
That the guy in charge of developers left about a year after we parted ways... every time I think about those people I wonder if he knew it was all bullshit or if he just got tired of dealing with attitude from stressed out developers and never understood why they were pushing back.
Assuming you're talking about philosophies that are considered good practice because they lead to more sustainable design practices and smoother development later, I have doubts those ever survive in long-term consulting contracts. The way pressure flows in those scenarios always leads towards emphasizing speed of development. Anything else requires multiple points in the management path both in the local firm and client firm to be willing to forego short term cost for potential long term gains, and if any one of them is out of alignment it causes problems.
Can Apple afford to spend more per product? There are plenty of other phones in the same price-bracket as the iPhone, and some like the Galaxy S-series phones surely have the volume, to justify a $10–20 increase in SoC cost to get competitive performance.
I expect a larger part of it is there's no justification for Qualcomm to develop such a SoC, because it already gets the sales.
Yeah, Apple has sucked almost all the profit of the Smartphone sector for a long time.
It is just one thing: volume. Their volume is so great and prices so high that they get almost all the profit. Their volume also gives them terrible negotiation power with suppliers, they get the best there it is(like electronics), for cheap. The rest of the companies just fight for the spoils.
Samsung while being the best in the competition, but is is very far from Apple.
I think the fact they're only acquiring the relevant part of the company is a fantastic move. It really shows apple is focused on what they're doing and not just buying their way into markets like Cisco or Intel.
But it's not a bad way to start shipping advanced power electronics like GaN, which dialog has chips for.
> Dialog Semiconductor is the exclusive designer of power management integrated circuits (PMICs) for the Apple iPhone, iPad, and Watch, which made up more than 70% of Dialog’s 2016 sales. Its share value halved from April to December 2017 after private bank Bankhaus Lampe changed its outlook for the company from “hold” to “sell” in the belief Apple would replace Dialog’s PMIC designs with its own...
Take the money, get rid of the sword over your head, and keep working on your smart home tech with your new valuations and nobody yelling Frog and expecting you to jump. There are worse ways to run a medium sized company.