Apple 'Unlikely' to Use Audience's New Noise Suppression Technology in iPhone 5

Audience today announced that it appears "unlikely" Apple will use the company's earSmart noise suppression technology in the upcoming iPhone 5. Audience's technology was reported to a key innovation providing support for Siri on the iPhone 4S, and Apple was reported back in February to have licensed Audience's next-generation technology for future products. But with today's announcement, it appears that Apple has elected not to take advantage of the technology.

Audience sells processors and licenses its processor IP to Apple Inc. and certain of its subsidiaries (collectively, OEM) for inclusion in the OEM's mobile phones pursuant to a Master Development and Supply Agreement (MDSA). Pursuant to a statement of work under the MDSA, amended in March 2012, Audience developed and licensed a new generation of processor IP for use in the OEM's devices. However, the OEM is not obligated to use Audience's processor IP.

Audience now believes that it is unlikely that the OEM will enable Audience's processor IP in its next generation mobile phone. Audience is not aware of any intended changes by this OEM to its use of Audience's processors or processor IP in prior generations of the OEM's mobile phones.

audience earsmart
Apple's decision not to use Audience's new IP in the iPhone 5 will impact Audience's financial picture beginning one quarter after the introduction of the iPhone 5, as Audience receives licensing royalties from Apple one quarter after the device's are sold to end users.

Peter Santos, president and chief executive officer, commented, "While we are disappointed by this development, we are confident in the diversification of our business and see sustainable growth in 2012 and beyond. As such we are raising guidance for the third quarter of 2012. Looking ahead, we believe our expansion into adjacent markets such as Smart TVs, automotive, and notebooks, will continue to bring growth in 2013 and beyond."

Audience delivered a standalone voice processing chip for the iPhone 4, but the company's technology was reportedly incorporated directly into the A5 chip used to power the iPhone 4S. The improved Audience technology integrated into the A5 was said to be much better at suppressing background noise, thus allowing Siri to more easily pick out the user's voice.

It is unclear what voice processing technology Apple will be using in the iPhone 5, but it seems that the company has found a better or more cost-effective solution than that offered by Audience.

Update: Audience's stock is down over 40% in after-hours trading following the announcement.

Related Forum: iPhone

Popular Stories

iPhone 17 Pro Blue Feature Tighter Crop

iPhone 17 Pro Launching Later This Year With These 13 New Features

Wednesday April 23, 2025 8:31 am PDT by
While the iPhone 17 Pro and iPhone 17 Pro Max are not expected to launch until September, there are already plenty of rumors about the devices. Below, we recap key changes rumored for the iPhone 17 Pro models as of April 2025: Aluminum frame: iPhone 17 Pro models are rumored to have an aluminum frame, whereas the iPhone 15 Pro and iPhone 16 Pro models have a titanium frame, and the iPhone ...
iPhone 17 Air Pastel Feature

iPhone 17 Air Launching Later This Year With These 16 New Features

Thursday April 24, 2025 8:24 am PDT by
While the so-called "iPhone 17 Air" is not expected to launch until September, there are already plenty of rumors about the ultra-thin device. Overall, the iPhone 17 Air sounds like a mixed bag. While the device is expected to have an impressively thin and light design, rumors indicate it will have some compromises compared to iPhone 17 Pro models, including only a single rear camera, a...
apple watch ultra yellow

What's Next for the Apple Watch Ultra 3 and Apple Watch SE 3

Friday April 25, 2025 2:44 pm PDT by
This week marks the 10th anniversary of the Apple Watch, which launched on April 24, 2015. Yesterday, we recapped features rumored for the Apple Watch Series 11, but since 2015, the Apple Watch has also branched out into the Apple Watch Ultra and the Apple Watch SE, so we thought we'd take a look at what's next for those product lines, too. 2025 Apple Watch Ultra 3 Apple didn't update the...
iphone 17 dummies sonny dickson

iPhone 17 Air Almost as Thin as Its Buttons, New Images Show

Thursday April 24, 2025 2:14 am PDT by
If you missed the video showing dummy models of Apple's all-new super thin iPhone 17 Air that's expected later this year, Sonny Dickson this morning shared some further images of the device in close alignment with the other dummy models in the iPhone 17 lineup, indicating just how thin it is likely to be in comparison. The iPhone 17 Air is expected to be around 5.5mm thick – with a thicker ...
AirPods Pro 3 Mock Feature

AirPods Pro 3 Just Months Away – Here's What We Know

Friday April 18, 2025 5:16 am PDT by
Despite being more than two years old, Apple's AirPods Pro 2 still dominate the premium wireless‑earbud space, thanks to a potent mix of top‑tier audio, class‑leading noise cancellation, and Apple's habit of delivering major new features through software updates. With AirPods Pro 3 widely expected to arrive in 2025, prospective buyers now face a familiar dilemma: snap up the proven...
ipad air magic keyboard feature

iPadOS 19 Rumored to Show Mac-Like Menu Bar When Connected to Magic Keyboard

Thursday April 24, 2025 12:09 pm PDT by
When an iPad running iPadOS 19 is connected to a Magic Keyboard, a macOS-like menu bar will appear on the screen, according to the leaker Majin Bu. This change would further blur the lines between the iPad and the Mac. Bloomberg's Mark Gurman previously claimed that iPadOS 19 will be "more like macOS," with unspecified improvements to productivity, multitasking, and app window management,...
top stories 2025 04 26

Top Stories: iPhone 17 Air Rumors, Apple Watch Turns 10, and More

Saturday April 26, 2025 6:00 am PDT by
We've known for quite some time about Apple's plans for a thinner "iPhone 17 Air" coming later this year, but wow, the latest dummy models give us our best look yet at just how thin this phone is going to be. Other Apple news and rumors this week included another iOS 18.5 beta, the 10th anniversary of the Apple Watch launch, and more management reshuffling in Apple's Siri division, so read...
Global Close Your Rings Day Pin

Apple Stores Giving Away a Limited-Edition Pin For Free Today

Thursday April 24, 2025 10:15 am PDT by
Starting today, April 24, Apple Stores around the world are giving away a special pin for free to customers who request one, while supplies last. Photo Credit: Filip Chudzinski The enamel pin's design is inspired by the Global Close Your Rings Day award in the Activity app, which Apple Watch users can receive by closing all three Activity rings today. The limited-edition pin is the physical...

Top Rated Comments

Cougarcat Avatar
165 months ago
I'm not sure this is front page material..

It's more front page material than "Tim Cook and Jony Ive Top Vanity Fair's 'The New Establishment' List" and the Laurene Powell Jobs stories.
Score: 33 Votes (Like | Disagree)
Yujenisis Avatar
165 months ago

Ugh, with a pun that bad…can you blame Apple? :D
Score: 22 Votes (Like | Disagree)
twiggy0 Avatar
165 months ago
Down 40%? Ouch.
Score: 17 Votes (Like | Disagree)
LagunaSol Avatar
165 months ago
I must say, it seems Apple are often reluctant to include latest technologies in their devices. For example, the Nokia Lumia 920 announced this week has wireless charging. Apple have said they're not including NFC payments with the iPhone 5 and now this noise thing. I know Apple are often about coming up with their own technologies, but other phones will be more up to date than the iPhone 5 even before it comes out.

Apple have never been ones to check items off a spec sheet. Sometimes technologies that have not yet fully-ripened or if the usage demand is not there, they may not make the cut. It has nothing to do with being "up to date."

Wireless charging is not as compelling a feature as you may think. The Palm Pre had it - no one cared.

NFC, maybe.

If Apple included a built-in comb on the next iPhone, would that make all Android devices "out of date?" ;)
Score: 12 Votes (Like | Disagree)
WildCowboy Avatar
165 months ago
I'm not sure this is front page material..

It's pretty darn rare for an Apple partner to speak publicly about an unannounced product, even to say their stuff won't be used.
Score: 11 Votes (Like | Disagree)
3282868 Avatar
165 months ago
Translation:

"Apple bought rights to the company, secured it's IP, then decided against using it in their mobile device line, thereby screwing said company. Due to Apple's 'arrangements', said company may not use this IP in other mobile devices, but may venture into other device markets. Company's stock dove after announcement."

Good job Apple. Buy out tech, keep it, don't use it, sink it. Rinse. Repeat.
Score: 9 Votes (Like | Disagree)