Apple bets $600 million on improving Apple Watch, iPhone battery life

Enlarge / The iPhone X in gray space (left) compared to the iPhone XS gold (right). You can hardly tell the difference from this angle.

Samuel Axon

Apple has signed a huge contract that will advance its chip making ambitions. The tech giant has agreed to pay a total of $ 600 million to Dialog Semiconductor a UK-based chip maker that has been working with Apple since the release of the first iPhone.

This large sum will be used to finance two things: $ 300 million in cash will be used to finance part of Dialog, including licenses for food management technology, asset management and more. 300 employees who will now work for Apple. The company will pay the remaining $ 300 million to Dialog in advance for the products to be marketed in the next three years.

"Dialog has great expertise in chip development and we are excited to have this group of talented engineers who have been supporting our products for a long time and working directly for Apple," said Johny Srouji, vice -president director of material technologies at Apple a declaration . "Our relationship with Dialog goes back to the first iPhones and we look forward to continuing this long-standing relationship with them."

The 300 Dialog engineers who will now be Apple employees have already worked closely with the company. These people will continue to work in offices across Europe while Apple will take over some Dialog facilities in Italy, Germany and the United Kingdom.

The acquisition of Dialog by Apple underlines the seriousness with which the company manufactures its own chips, especially for the management of food. Apple already makes chips in its iPhones and iPads, but a larger part of the manufacturing process could help the company cut costs.

In addition, more efficient power management chips could enhance Apple devices such as AirPods and the Apple Watch. While battery life is a major concern for all Apple devices, it is more important in accessories such as wireless headsets and the Watch, both designed to work all day or for days at a time. time.

With Dialog's technology and IP, Apple will likely be able to develop a higher quality power management chip than it would have itself. After the acquisition, the rest of Dialog 's company will focus on the markets of IoT, automotive, computer and storage.

The agreement is expected to be finalized early 2019, pending regulatory approvals.

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