Apple supplier
Cirrus Logic Inc. has said that they are facing “manufacturing problems” with a new “audio device” that began “high-volume production” last month. The company is not clear as to which device is facing issues (or even if it’s for Apple) but the possibilities range from this fall’s new iPod lineup, the iPhone 5, iPad 2s, or even the white iPhone 4 that is said to
have started production last month.
But 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 company also says that they have fixed the issue but it will hurt their bottom line by 6 cents a share. Cirru Logic Inc’s CEO says the issue is “unfortunate” and:
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.’
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