Wolfson loses Apple iPod Contract
Wolfson Microelectronics, the Edinburgh microchip designer, has suffered a significant setback after losing its contract to supply components for the Apple iPod Touch and iPod Nano.
Failure to renew the deal, which analysts believe accounts for at least 15 per cent of Wolfson’s revenue, led to the Scottish group’s share price dropping by a third in early trading yesterday. Wolfson will continue to provide audio chips for Apple’s iPhone.
Its shares tumbled by as much as 30 per cent to a three-and-a-half-year low of 99p, recovering to 116p by the close, down 26p on the day.
Apple’s withdrawal is the latest blow in a year that has seen Wolfson’s shares fall by almost two thirds. They hit a record high of 560p in June 2006.
The company was considered the bright spark of the UK technology sector when it floated in October 2003, with contracts to supply parts for devices such as the X-Box, Tom-Tom satellite navigation systems and Samsung handsets.
Source: imesOnline
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