The risk for companies relying heavily on a single customer was demonstrated recently when chipmaker Dialog Semiconductor admitted Apple has developed the capabilities to produce power management chips rather than having to rely on Dialog for them. This news caused the British-German company’s stock to plunge 23% and is now down more than 40% this year due to a recurrence of concerns about its relationship with Apple. Dialog typically receives very light news focus and this unfavorable story has dominated its recent media coverage, with most stories discussing its Apple business.
