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COMING UP:Share Opener Variant 2

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Transcript

00:00:00
>> Global tech stocks may be tumbling, but one European name soared Thursday. Chipmaker Dialog up as much as 34%. Call it the Apple effect. The Anglo-German firm selling a big chunk of itself to the US giant for $600 million. Reuters' technology correspondent Doug Busvine says some will see a cautionary tale.
00:00:21
>> Dialog is one of a number of suppliers that has become heavily dependent on Apple simply because the iPhone maker has become so big. Dialog itself expects Apple to account for 75% of total sales this year. With this deal it gets a chunk of change and hopes to be smaller but more diversified.
00:00:39
In three years time, Apple will account for around 35 to 40% of its business. Others have failed to make that transition. Imagination, a UK company, lost some Apple business last year. It ended up collapsing and being sold to a Chinese investor.>> It's Apple's biggest such acquisition in Europe.
00:01:01
It gets patents, engineers, and expertise in power management chips. That's the technology that governs your phone's battery life. As for Dialog, it gets to build a business with more than one big customer.