As major cloud service providers the likes of Amazon and Facebook focus on servers and switches, Apple has chosen a different route. The iPhone maker is increasingly using chips to optimize the performance of its hardware. A report from one of the industry analyst outlines Apple’s development of custom power management chips for its iPhone and iPads

The aggressive recruitment of engineers by Apple, who apparently are from third-party suppliers, speaks volumes about its intentions. A majority of them are from the United Kingdom-based Dialog. Apple’s chips currently cover its A-series app processors as well as a handful of parts being used in non-iOS devices.

Apple’s move impacts on chip and intellectual property suppliers

Apple has forever longed to make the core technologies competitive one of them being the power and battery management. The move is likely to hit back at major chip suppliers the likes of Dialog Semiconductor. The British chipmaker is one of the long-time suppliers of power management ICs (PMICs)

A report by Bankhaus Lampe confirms Apple’s shift by stating, “There is strong evidence that Apple is developing its own PMICs and intends to replace the chip made by Dialog at least in part.”

Dialog would lose close to three-quarters of its sales, which comes from Apple. However, it is not alone. Apple has also sent out a word to Imagination Technologies citing that it will not be using its GPU designs in the next two years. The company is already in a tough position of competition with the Android market from ARM’s Mali GPU cores.