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Audience Says Apple Might Not Use Their Noise-Cancellation Tech in the Next iPhone

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Reuters reports Audience has noted to shareholders its top customer, Apple, most likely won’t use its noise-cancellation technology in the next iPhone, which has caused the company’s shares to drop 46 percent in after hours trading:

Audience shares were down at $10.11 in trading after the bell. The stock closed at $18.86 on the Nasdaq on Thursday.

Ouch. As of writing the after hours price is at $8.80/share. Audience notes this announcement will not affect its 2012 Q3, but the quarter after Apple starts selling the next iPhone.

According to Audience, via StreetInsider:

Audience now believes that it is unlikely that the OEM will enable Audience’s processor IP in its next generation mobile phone. Audience is not aware of any intended changes by this OEM to its use of Audience’s processors or processor IP in prior generations of the OEM’s mobile phones.

In May of last year, Chipworks discovered it was Audience that powered noise cancellation in the iPhone 4, as revealed via X-ray. This February, some reports speculated the absence of Siri on the iPhone 4 was related to the lack of Audience’s specific “EarSmart” noise reduction technology.

If you’re lucky enough to be part of the lucrative Apple supply chain, you strike it rich. The moment you get pushed to the outside, you fall back to reality.

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