Apple may be working on its own power management integrated circuits

German chipmaker Dialog Semiconductor’s stock has tumbled in Frankfurt, currently down 24.5%, as private bank Bankhaus Lampe downgrades the German chipmaker to Sell on risks that it might lose a crucial supplier deal with Apple.

The investment bank points to strong evidence that Apple is working on its own power management integrated circuits (PMIC), after which it might drop Dialog's battery-saving chip ("at least in part") as soon as 2019. A source says Apple is recruiting Dialog's top engineers in Munich.

Despite attempts to diversity beyond the iPhone giant, Dialog likely saw more than 70% of its 2016 revenues from Apple. If the report is correct, this is further proof that Apple is bringing more and more tech in-house.

It was revealed last week that Apple planned to phase out graphics chips by Imagination Technologies with in-house with developed chips. Imagination's stock plunged 70%. And there are constant rumblings that Apple could eventually replace Intel chips in Macs with advanced versions of its A.x processors.