Apple broadens its partnership with Cirrus Logic
According to reports, Cirrus Logic and Apple signed an agreement to provide active noise reduction chips for Apple’s next-generation AirPods.
The relationship between Cirrus Logic and Apple dates back a long time. It is understood that Cirrus Logic's main income before comes from the audio chip supplied to Apple for the iPhone, as early as 2002, sales to Apple accounted for nearly 82% of its revenue. In the past two years, the smartphone industry has entered a slow growth period, especially due to the sluggish demand for iPhone X, which has a direct impact on Cirrus Logic.
Apple is known for its emphasis on quality, which is a key differentiator for its high-priced products, which also makes Apple's brand an advantage among its competitors. Apple choose Cirrus Logic in the next generation of AirPods, which also definitely shows Apple's recognition of the quality of the chips made by Cirrus Logic.
In addition, Cirrus Logic is expected to benefit from Apple's diversification strategy. It is reported that Apple is trying to increase the sales of other products, such as AirPods, which will promote the growth of Cirrus Logic.
In addition, Cirrus Logic is currently seeking to penetrate the Android market, believing it will reduce its reliance on Apple and expand its ability to cater to a larger customer base.