“Audience Inc. [ADNC], which makes chips used in Apple Inc’s iPhones, said its top customer is unlikely to use its technology for the latest iPhone, sending its shares down 58 percent in after-hours trading,” Aurindom Mukherjee reports for Reuters.
“Audience’s chips, which improve voice quality in mobile devices by filtering out background noise, are supplied to contract Apple manufacturers including Foxconn and Protek Ltd.,” Mukherjee reports. “The Mountain View, California, company also sells processors and licenses its processor intellectual property to Apple and some of its units.”
Mukherjee reports, “Although Audience did not specify why Apple would no longer use its technology, it noted in a conference call with analysts that the iPhone maker has built up its own audio team. For Audience, Apple’s licensing of its filtering technology accounted for 37 percent of total revenue for both the three months and six months ended on June 30. The company expects to continue to get royalty income from earlier iPhone models that use its technology.”
“Shares of the company, which went public in May, fell to $7.99 in trading after the regular market close, knocking $200 million off its market value,” Mukherjee reports. “The stock closed at $18.86 on Nasdaq on Thursday.”
Read more in the full article here.
MacDailyNews Take: So far, 57.58% of Audience’s value just evaporated. Ouch!
Because Slamdung has been funding the patents for Audience now forces Apple to go elsewhere.
Thea article state Scamdung is also a customer. i don’t see how you jumped to your conclusion.
No conclusion. Just a lame guess. Ignore me.
Scamdonkey may in deed buy chips from them also but that doesn’t mean they can’t invest in them or back IP interests to them. If 60% of the market share is Apple and ScumDonut has the remainder wait and watch where Audience goes from here. Bought out by Apple or vaporizes into thin air.
Apple Should by them.
buy them, perhaps – that move would shows Apple’s power to manipulate the markets at a much greater level. De-valuate by falsely ending the use of ones technology then buying them out just on the verge of distinction – okay do it Apple.
Unless Apple has actually home grown a noise cancellation chip embedded into the A5… yet that makes no sense too as Apple is still ordering production of iPhone 4 and 4s.
Distinction? I think you mean extinction!
When you have 1 huge customer that decides to do business with another company or use its own; KA BAM !!!
57.58% of your business DOES vanish in a blink of the eye.
Maybe Apple’s plan was to devalue it by 60% and THEN buy it.
Wonder who is supplying these chips?
No doubt your question has spawned someone’s ambition to come up with a hair-brained rumor on the subject.
We’ll most likely know after the first iPhone 5 take-apart. I can’t imagine Apple expecting Siri to work adequately without noise cancelation. It’s probably the #1 reason Apple hasn’t pushed Siri onto the iPod Touch and iPads.