DIALOG SEMI (OW, EUR51 PT) ---> OPPORTUNITY HERE (FROM OUR ANALYST) :
local broker downgrade pressuring shares this morning with them speculating Dialog will lose business with Apple, a la Imagination’s announcement last week. As we highlighted in our preview this morning, we think this couldn’t be further from the truth and there remain multiple differences between the two situations… 1) Imagination is digital (all 1s and 0s… many more engineers available for such development)… Dialog is analog/power (very hard to find such expertise). 2) Digital design cycles are much shorter than analog… so even if you could find appropriate engineers, it takes longer to catch up. 3) Dialog have been doing custom work with Apple for 10 years… but the chip includes Dialog’s own IP which is protected; given the tight integration between Dialog’s and Apple’s two chips, it would be even harder for Apple to start from scratch. 4) finally and most simply, Dialog’s content/price has been going up consistently over the past few years and will continue to do so in 2017/18… hardly a sign that Apple is unhappy with Dialog’s product. Their visibility is improving, not deteriorating. Link to this morning’s preview… pg. 16 : {https://live.barcap.com/go/publications/email?CL2303553&m=1488006006023&v=DTPHAnYZK8Bc6a3XBABqROoIMKqHDqVIt3EH_wGEA0S4dFEwvOcW8KpVy_kPnXM4}
[11 April 2017, 09:43:59] DIRK URFELS: barc