Dialog Semiconductor said Apple now planned to source the main power management chips (PMICs) for one of its three new iPhone models from two suppliers instead of just from the German chipmaker, Reuters reported.

That means that Apple will order 30 percent fewer of the wireless chips from Dialog this year than it had initially expected. If Apple is planning to source its own battery-saving chips for iPhones, it will impact Dialog.

Dialog derives more than half its revenue from supplying PMICs to Apple, the leading phone maker in the world.

Dialog Semiconductor said the reduced order volume for the PMICs will shave 5 percent off the chipmaker’s 2018 revenues. Dialog said it still expected its 2018 revenues to grow year-on-year.

Dialog Semiconductor CEO Jalal Bagherli told analysts on a conference call that the impact on 2019 revenues is likely to be similar.

Apple has not provided a reason for the change in its sourcing of chips.

“If you think about the fact that we are qualified for all three phones, that means there is no performance-related issue. It might be a statement of intent to reduce risk on having one supplier and have an alternative source,” he said.

Apple did not change the projected order volume for the other power management chip that Dialog is supplying for the new iPhone models – the sub-PMIC – nor for all other PMICs, including those for tablets, wearables and notebooks.

Dialog said it would continue to explore new mixed-signal opportunities outside of power management for future Apple products.

Dialog Semiconductor reported 23 percent increase in Q1 2018 revenue to $332 million with a gross margin of 46.3 percent. The semiconductor company said its mobile systems business achieved 17 percent growth.