The Benefits of Vertical Integration As Evidenced by Apple’s Intent to Purchase Assets from Dialog
Apple has agreed a deal to acquire its long-time supplier Dialog Semiconductor’s assets, which include 300 employees and patents in a $600 million deal, which is expected to close in the first half of 2019, subject to regulatory approval.
Dialog supplies power management circuits to Apple, which help to extend the battery life of its iPhones and iPads. The move comes after Apple announced last November that it was planning to phase out the use of Dialog’s products as Apple stated it would be using chips from another supplier.
This was believed to be Apple itself and, with the acquisition of Dialog’s assets, this allows Apple to bring the development of chips in-house.