Wolfson coy on Apple rumours

Wolfson Microelectronics, which makes semiconductors for consumer electronic products, has risen on rumours it is doing business with Apple again.

The company took a hit when Apple said it would not use the UK company's chips in the later generation iPhones and iPads.

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Peel Hunt analyst Alex Jarvis said an ABI Research 'teardown' of the Apple Lightning to 30-pin Adapter revealed a Wolfson audio chip.

"This is a small part and the volume expectations for the adapter are likely to be low, tens of millions per annum - noting that third-party adapters are also on the market," he wrote in a note.

"However, it is a major positive for Wolfson that it is supplying Apple again.

"Apple remains a significant revenue opportunity for audio hubs and MEMS microphones in the future and any news that confirms an improving relationship with Apple is positive.

"It is important for Wolfson to demonstrate that its relationship with Apple is being rehabilitated."

Wolfson gave a non-committal response to the news saying that "along with its peers, operates under strict customer confidentiality clauses and as a result cannot comment on specific customer relationships or projects".

"The company remains comfortable with the current market consensus of financial forecasts, bearing in mind the rate at which designs-ins ramp to volume production," it said.

"It is relevant to mention that any new customer relationship would normally start with relatively modest projects until confidence is built and the relationship develops."

Wolfson's shares were up 3.3% in morning trading on Monday.

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