According to a report by multimedia financial services company Motley Fool, Cirrus Logic is trying to expand its customer base in three ways to reduce over-reliance on Apple.
Cirrus Logic has been providing audio chips for Apple’s iPhone and Mac products. Over the years, this has generated a lot of revenue for Cirrus Logic, but it has also become Cirrus Logic’s biggest problem. According to Motley Fool, in the nine months prior to Cirrus Logic’s fiscal year 2019, sales to Apple accounted for 81% of the company’s overall revenue.
Motley Fool mentioned that in order to reduce reliance on Apple, Cirrus Logic is planning to expand its customer base in three ways.
First, Cirrus Logic will expand its customer base of Android phones. Currently, Cirrus has occupied a large share of the flagship audio market through its Apple business, but Apple is not the only company that manufactures high-end smartphones. Other companies, including Samsung, Huawei, Oppo and Vivo also have a certain market share. Through mid-range smartphones and the flagship Android smartphone market, Cirrus Logic can increase sales, diluting Apple’s share of total sales.
Second, smart accessories, Cirrus Logic is very optimistic about this market. According to Cirrus Logic, smart accessories will need to have the same type of electronic components as mobile devices, including audio codecs, audio amplifiers, haptic drivers and MEMS microphones. In recent years, the market for smart watches and wireless earphones is expanding rapidly. If Cirrus Logic enters this market with its advantages in audio IC products, it has the opportunity to occupy a certain market share for a long time.
The third is smart home. Cirrus Logic’s opportunities in this field are not as big as mobile phones or smart accessories. For example, mobile devices require audio codecs, audio amplifiers, haptic drivers and MEMS microphones, but smart home products may only need Codec and MEMS microphone. Although there are not many products used in smart home products, according to Cirrus Logic, it is already a supplier to the “top two smart home OEMs”.
In addition, Cirrus expressed the hope to increase new customers and expand the range of products supplied to existing customers through its existing customer base by 2020.