The Reverse iPod Halo Effect For Wolfson
03.28.08 - 09:21am
The iPod halo effect has proven that it can also be extremely damaging. Wolfson Microelectronics, the Edinburgh microchip designer, which once prospered under the glow set off from the iPod has now suffered an extreme drop in share prices of almost 30 percent, as news broke that the iPod contract from Apple was lost.
Wolfson had previously lost the contract to manufacture the chips for the iPod Classic but was still providing the chips for the iPod Touch and iPod Nano which it admitted to losing yesterday in a business update.
While still making microchips for the iPhone, the loss of the contract has dropped shares to the lowest in three-and-a-half years. Investors are worried that the loss of the iPod contract is just the beginning in setbacks for the once heralded company.Wolfson has also failed to land big deals in other music-enabled phones to replace the MP3 players.
