Apple iPhone chips could be proprietary next year

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Apple CEO Tim Cook prepares to greet customers that will purchase a new iPhone X at an Apple Store on November 3, 2017 in Palo Alto, California.

Apple is designing its own main power management chips for use in iPhones as early as in 2018, the Nikkei business daily reported on Thursday citing sources.

Apple’s move would reduce its dependence on Dialog Semiconductor, that makes power-management chips for smartphone makers.

“Based on Apple’s current plan, they are set to replace partially, or around half of its power management chips to go into iPhones by itself starting next year,” a source said, according to the Nikkei report.

Shares of the Anglo-German chipmaker fell 7.2 percent, while Apple’s shares were up marginally in premarket trading.

Apple did not immediately respond to a request for comment. Dialog could not immediately be reached for comment.