Cirrus Logic Manufacturing Issue Affected an Apple Product?

Apple supplier Cirrus Logic has disclosed that it experienced a manufacturing issue with a new audio device that entered high-volume production last month, causing reduced profits in its fiscal fourth quarter.

Apple makes up about half of Cirrus's revenue and analysts strongly believe the issue they experienced was with an audio component for an Apple device.

According to the WSJ, 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.


"The semiconductor industry is inherently an extraordinarily complicated business, and while we strive at all times to have zero issues, from time to time, and despite everyone's best efforts, 'stuff happens,'" President and Chief Executive Jason Rhode said.

It's speculated that the component in question could have been for iPad 2 or even possibly the iPhone 5. Cirrus says its priority was to avoid ruining a successful launch for their customer. "We believe that we have been successful in that regard," he said.

Read More