Cirrus is enjoying great monopoly in the Audio segment of ICs, acquiring of Wolfson will increase the domination of the major player in the market, this may adversely affect in terms of price rise as well as per laws of economics
Oh yes Qualcomm own many technological developments, in case of Audio, they have "HD Audio" as theatre like experience on mobile devices using Snapdragon Processors. And they are also spreading the deployment of "AllPlay" an unique experience of sharing audio among all the devices in home wirelessly.
Despite the market power of the combined company, the pressure to further innovate and integrate will always be there, as will the ever-present pressure for lower ASPs. The latter simply goes with the territory in the semiconductor business.
"For many years both Cirrus and Wolfson have been strong competitors in this market,"
I am speculating that certain products from these two different organizations, which are merging together, would become redundant. This kind of situation creates lots of uncertainties and fear among the engineers working for those rival products, most of the time resulting in confusion and frustration for some time and then closure of one of those two most of the time. This is painful for the employees...isn't it?
@Sanjib.A, it is bound to be, but this is not the main concern of shareholders. This merger makes sense on paper since the trend towards integration of sensors in smartphone will see new players coming into play e.g. ST. This is a preventive move, and I doubt the combined company will still have ~50% of the market in few years time.
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