SAN FRANCISCO—A report that Cirrus Logic Inc. has lost the coveted audio codec socket in the forthcoming iPhone 5 from Apple Inc. is factually inaccurate and not credible, according to a Wall Street analyst.
The report, which originated in Taiwan Economic Daily News, caused Cirrus Logic stock to dive by as much as 15 percent. The report indicated that the iPhone 5 audio codec slot went to Wolfson Microelectronics Inc.
According to Vernon Essi, a vice president of equity research at Needham & Co. LLC, the article, published in Mandarin Chinese, focuses on the favorable impact Qualcomm Inc. would have to Taiwan Semiconductor Manufacturing Co. Ltd. if Qualcomm were designed into the iPhone 5. The article quotes a source saying that other chips in the iPhone 5 will come from the same vendors as the previous generation iPhone. This would include Cirrus Logic, which has a virtual lock on the audio codec slot, according to market research firm iSuppli Corp.
According to Essi, the article references older iPhone vendor material, possibly from the iPhone3G, to list suppliers, including Samsung Electronics Co. Ltd. as the CPU supplier. Starting with the iPhone 4, Apple began using its own internally developed A4 as the processor.
Though he stressed he does not know what components will be in iPhone 5, he said the Tawian Economic Daily News article was not credible and gave him no reason to alter his bullish stance on Cirrus Logic. Needham and Co. maintains a "buy" rating on Cirrus Logic stock.
Cirrus Logic did not immediately respond to request for comment on the matter.
After a significant decline in early Nasdaq trading Thursday (Sept. 30), Cirrus Logic rebounded to $17.97 in late afternoon trading, down about 6 percent from Wednesday's close.
I guess all the Macs/iPad/iPod have Cirrus Audio Chip. see links below. its 36% btw
Between July 27th of this year and today the VP and CFO of Cirrus has unloaded 106 thousand shares of Cirrus stock (the most recent sell was 20k shares on 9/29... which I believe is the same day as the report out of Taiwan... for $18.75)
Most signs today suggest all these things are coincidences and that the origonal article was incorrect in its implications regarding Cirrus. Nothing definitive that I've seen though.
I would enjoy hearing from knowledgable folks on how news such as that of the origonal article can be an advantage for those who pay attention FROM A TECHNICAL OR BUSINESS perspective; the investor reaction perspective I get.
@yalanand- I have not heard this about Cypress replacing TI/Broadcom. Did this also come from the Taiwan Economic Daily News article? All I know is that Vernon Essi makes a pretty convincing argument that that report was factually inaccurate and not credible.
I don't know what chips will be in the iPhone 5. Frankly I'm not sure anyone does. But it's interesting to note that a recent iSuppli teardown of the newest iPod nano found a Cypress touch screen controller. The firm made a point to mention that this was a big design win for Cypress because other Apple touch screen products have used Broadcom and TI. So there may be something there. For what it's worth...
Cirrus had ONLY this codec with the iphone, when I last checked. 33% ?? Where do they make that much money off Apple. Or is that all the money they make!! This really makes Cirrus look like a little company.
David Patterson, known for his pioneering research that led to RAID, clusters and more, is part of a team at UC Berkeley that recently made its RISC-V processor architecture an open source hardware offering. We talk with Patterson and one of his colleagues behind the effort about the opportunities they see, what new kinds of designs they hope to enable and what it means for today’s commercial processor giants such as Intel, ARM and Imagination Technologies.