Friday, June 22, 2012

New Apple “Audio Device” Facing Manufacturing Woes

Cirrus Logic Inc., a part supplier for Apple, has said that it is facing manufacturing woes with a new "Audio Device" of Apple that has gone in mass production earlier this month. At this point in time, it is just a speculation
as the company has not revealed what sort of device it is talking about, and whether its an Apple device or not.
Cirrus essentially provides analog chips for  in popular Apple devices such as the iPod and iPad. The device which is facing manufacturing problems can by anything. It can be the upcoming iPod line, it can be the upcoming batch of iPad 2 or it can even be the white iPhone 4 which has been in doldrums ever since it was announced. Speculations have gone as far as to predict that maybe this is the reason for iPhone 5 release delay.


"But Cirrus late Thursday said it had determined an earlier test for a particular function of a new audio product–which analysts assume is for Apple–was insufficient to guarantee that all products met a certain standard. After a more rigorous test was developed, Cirrus found fewer working chips than previously expected, with that yield loss rising as volumes increased."


So what does this mean for Cirrus? Well in an industry as competitive and brutal as the semiconductor one, it could greatly hamper the stock of Cirrus, keeping in mind the fact that Apple accounts for half of Cirrus revenue, so naturally the company wouldn't want to put off their highest buyer.

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