Apple powers up with chip swoop

APPLE has struck a £450m deal with a British chip maker to buy the power management technology at the heart of its iPhones.

The US technology giant will acquire patents and staff from Reading-based Dialog Semiconductor, which is listed in Frankfurt.

Since the first iPhones a decade ago, Apple has used Dialog chips to extend their battery life.

Under the deal, Apple is buying patents, a 300strong engineering team, most of whom already worked on chips for its devices, and Dialog offices in the UK, Italy and Germany.

Dialog shares surged as much as 34pc yesterday, their highest rise since 2002, as the deal bought it time to reduce its dependence on Apple.

Apple accounts for three-quarters of Dialog’s sales but this is expected to fall to less than half.

Jalal Bagherli, Dialog’s chief executive, said the deal would enable an overhaul and it would seek new opportunities in areas such the so- called Internet of Things, including fitness trackers and smart watches. Its headcount will fall to 1,800.