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Apple partner Cirrus Logic reports production problem with mystery audio device

post #1 of 15
Thread Starter 
Cirrus Logic has experienced manufacturing problems with an audio device that entered high-volume production in March, prompting speculation that the device is an Apple product.

Cirrus's analog chips are found in devices like iPods and iPads, and Apple is responsible for about half of the company's revenue. Cirrus disclosed the manufacturing problem this week, but did not disclose the identity of the affected product.

According to Dow Jones Newswires, analysts have already assumed that the affected product is Apple, given the amount of business Cirrus receives from the Cupertino, Calif., company. Cirrus said the problem with the new audio device resulted in reduced profits in the company's fiscal fourth quarter.

Cirrus said a chip it provided for a new product failed to meet a certain standard. Testing of the hardware found that fewer chips were working than had been expected.

Despite the issues, Cirrus President and Chief Executive Jason Rhode said he does not believe the successful launch of the affected product was impacted. He did not say whether the product has already been released, or is yet to go on sale.

Jeff Schreiner of Capstone Investments was one of those who has assumed Cirrus's issues lie with an Apple product. He reportedly said that Apple's strategy, which involves manufacturing new products quickly and at high volume, likely exacerbated the problem.

"Normally a customer may be willing to slow down their ramp, but not in this case," he said. "Apple was probably ramping the iPad 2 and other devices we haven't heard of yet."

If the affected product is in fact an Apple device, the most obvious hardware would be the iPad 2, which went on sale in March. Apple has struggled to keep up with demand for its second-generation tablet device since it first went on sale in the U.S. on March 11, and in 25 more countries on March 25.
post #2 of 15
I hope they will be able to fix this because I have lots of CRUS stocks.

And AAPL is getting pretty low, foward p/e is at 12, which is very low.
post #3 of 15
24 bit iPod?

Which of us is the fisherman and which the trout?

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Which of us is the fisherman and which the trout?

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post #4 of 15
maybe the reason for delayed iPhone5 release?
post #5 of 15
"ix.Mac.MarketingName"?
post #6 of 15
Quote:
Originally Posted by AppleStud View Post

maybe the reason for delayed iPhone5 release?

Not likely. I don't think they'd have been ramping up already in March for a summer product release. It's most likely as the article said, iPad 2.

We've been wondering if the lack of availability of iPad 2s was because of such high demand or low supply, or combination of both. This could be contributing to the low supply side of the equation if the production yields of one of the iPad comonents was significantly below projections.

Time for someone at iFixIt or iSupply to see if there are any new audio components campared to the iPad 1 and who manufactures it.
post #7 of 15
Quote:
Originally Posted by JupiterOne View Post

"ix.Mac.MarketingName"?

This is interesting,
post #8 of 15
It's the new iPod Hi-Fi! Confirmed!

Proud AAPL stock owner.

 

GOA

 

Get the lowdown on the coming collapse:  http://www.cbo.gov/publication/45010

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Proud AAPL stock owner.

 

GOA

 

Get the lowdown on the coming collapse:  http://www.cbo.gov/publication/45010

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post #9 of 15
Despite the issues, Cirrus President and Chief Executive Jason Rhode said he does not believe the successful launch of the affected product was impacted.

The way I read it is the product had a successful launch and was not affected. So must be something already out.
post #10 of 15
Quote:
Originally Posted by Scroat View Post

Despite the issues, Cirrus President and Chief Executive Jason Rhode said he does not believe the successful launch of the affected product was impacted.

The way I read it is the product had a successful launch and was not affected. So must be something already out.

yeah, that's how I read it too.
post #11 of 15
I hope this is some piece of home audio equipment like the Sonos system or Logitech Squeezebox! I always thought Apple dropped the ball on bringing a good home audio system, or component. They should have had something like the Sonos or Squeezebox.

Maybe this is an integrated device with Apple TV -- a home audio AND video system.

I've got a Squeezebox and LOVE it. It's playing right now on my Macbook Pro as I type this, streaming to my stereo, complete with a good DAC. I love the web interface (better than the Duet remote that came with it), and like that it plays FLAC files.

I'm also running iPeng on my iPhone for a remote Squeezebox controller.
post #12 of 15
Quote:
Originally Posted by AppleInsider View Post

Cirrus Logic has experienced manufacturing problems with an audio device that entered high-volume production in March, prompting speculation that the device is an Apple product.

Cirrus's analog chips are found in devices like iPods and iPads, and Apple is responsible for about half of the company's revenue. Cirrus disclosed the manufacturing problem this week, but did not disclose the identity of the affected product.

According to Dow Jones Newswires, analysts have already assumed that the affected product is Apple, given the amount of business Cirrus receives from the Cupertino, Calif., company. Cirrus said the problem with the new audio device resulted in reduced profits in the company's fiscal fourth quarter.

Cirrus said a chip it provided for a new product failed to meet a certain standard. Testing of the hardware found that fewer chips were working than had been expected.

Despite the issues, Cirrus President and Chief Executive Jason Rhode said he does not believe the successful launch of the affected product was impacted. He did not say whether the product has already been released, or is yet to go on sale.

Jeff Schreiner of Capstone Investments was one of those who has assumed Cirrus's issues lie with an Apple product. He reportedly said that Apple's strategy, which involves manufacturing new products quickly and at high volume, likely exacerbated the problem.

"Normally a customer may be willing to slow down their ramp, but not in this case," he said. "Apple was probably ramping the iPad 2 and other devices we haven't heard of yet."

If the affected product is in fact an Apple device, the most obvious hardware would be the iPad 2, which went on sale in March. Apple has struggled to keep up with demand for its second-generation tablet device since it first went on sale in the U.S. on March 11, and in 25 more countries on March 25.


Yep, sure looks that way, but who knows:

http://www.chipworks.com/en/technica...io-codec-slot/

--S
post #13 of 15
Apple TV gaming console... BTW is it just me or is the audio quality on the iPad 1 and 2 much better than the iPhone, and definitely better than the Mac...
post #14 of 15
It would be very Apple-like to lead rumours in the wrong direction.

My guess is that we're on the precipice of a widescreen Apple TV. Think about it, SJ hates wires that junk up the desktop for computers; how much spaghetti comes and goes from a current TV with a VCR? The Ives Jobs aesthetic demands that those cables disappear

(1) The Apple TV box is the size of a paperback book
(2) Apple dropped 3.5 billion on a something related to displays, and now
(3) The audio.

What other elements are there in a TV? The only thing left is to stick it all in one box

It's hard to keep secrets in a company the size of APple, so each department works on a critical element that's part of the whole, but only the top managers know what it is. They did that with the iPhone and managed to maintain the surprise factor. An Apple TV would be even bigger and would have all competitors scurrying to respond, hence the need for secrecy.

just thinking out loud, guys
post #15 of 15
Quote:
Originally Posted by nvidia2008 View Post

Apple TV gaming console... BTW is it just me or is the audio quality on the iPad 1 and 2 much better than the iPhone, and definitely better than the Mac...

Interesting that you mention it. I thought the same thing too. The audio quality is far better on both iPads than any other device. My first thought was the amp chip simply had more power. iPads appear to drive my various headphones with a touch more gain, headroom and dynamic range. In my experience a little extra power will take the audio quality a long way. I don't think Apple lists those specs though so I haven't confirmed what the difference may be.

I'm personally hoping for Apps or some kind of significant home entertainment upgrade. Maybe HD audio, Games/ Apps and some sort of improvement to the movie experience (Airplay licensing or the unlikely 1080 streams?)

I don't think Apple will make a TV unless it did something remarkably better than current monitors. They would have to add touch or Higher DPI, a new "3D" GUI or something for it to be uniquely Apple. I'm not sure the market is ready for that kind of innovation nor the potential price tag. Not in the same way music and movies were in need of innovation in distribution and personal playback.

At this point they just need a lynch pin to tie the various entertainment media together. Outrageous new products can come later. I would think an updated ATV would do just fine. Seems like Apple is already doing well in the streaming movie market.
turtles all the way up and turtles all the way down... infinite context means infinite possibility
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turtles all the way up and turtles all the way down... infinite context means infinite possibility
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