Wolfson loses iPod chip contract


Reuters reports that British chip-maker Wolfson Microelectronics has not been picked to supply parts for next-gen versions of the iPod touch and iPod nano, which are due for release in the third quarter.

"IPods have been a big contributor historically to revenues, so it's pretty disappointing for them," said Panmure Gordon analyst Nick James, though he added that Wolfson was still supplying the iPhone and that handset growth was encouraging.

Wolfson said a strong performance from its other applications, such as handsets and GPS systems, would mitigate the setback, as it continues to diversify away from music players.

The company's share price fell below a pound on the news.

Editor's note: It makes sense that Apple will ship revised players ahead of the holiday shopping season. In fact, it's an established pattern.

With about five or six months until then, if we're going to see the rumored iPhone / touch capacity boost / price reduction, it'll need to happen very soon...

What's your take?

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