Wolfson takes hit after losing Apple contract
updated 10:40 am EDT, Mon October 5, 2009
Suffering declines due to iPhone, iPod work
Scottish manufacturer Wolfson Microelectronics is projecting year-over-year financial declines for its fourth quarter, says the Financial Times. Revenue is expected to be between $33 and $34 million, flat relative to the second and third quarters of 2009, but down from $37.4 million in the fourth quarter of 2008. The trouble is attributed mainly to a broken relationship with Apple; while Wolfson chips are featured in the iPhone 3G, there are none to be found in the iPhone 3GS.
As a result of losing its Apple contract last year, Wolfson has also suffered in not manufacturing iPod chips. The company hopes to recoup some of its money through a deal to supply chips for a new US phone, which analysts believe is being produced by Nokia.
The iPhone and iPod can sometimes have a dramatic effect on the electronics industry. As a result of their popularity, the devices have occasionally created industry-wide memory shortages, affecting prices and the ability to deliver products on time.
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Joined: Aug 2004
History repeats itself
The same thing happened to Portal Player when basically all of their revenue was based on Apple using their chips in the iPods.