With the launch of the new iPhone 5, Cirrus Logic Inc has gained fair profit in the market. The reason behind the success of this company is the chip manufactured by Cirrus being used in the iPhone 5. Financial analysts have stated that, with the new iPhone 5 gaining popularity in the market, Cirrus has gained a profit of 91% in the stock market with the share prices having touched the sky. The second quarter sales reported by Cirrus Logic Inc has proved many analysts who had stated that iPhone 5 might not work wonders like other models of iPhone, wrong.
In NASDAQ, the share price of Cirrus gained eleven percent hike and reached a level of 40.78$ when the trading closed this Wednesday. Apple is one of the largest importers of chips from Cirrus used in the highly popular iPhone. Apple has been accountable for 62% of total profit of Cirrus. Higher authorities at Cirrus has stated that, Apple has demanded more of their chips for their new iPhone 5 since Apple plans to ship an estimated number of 26.9 million iPhone for the fourth and last financial quarter. Cirrus has been working with Apple for their iPhone since the launch of the first iPhone in the market.
Another leading chip provider for Apple was Audience Inc, which was unable to provide the high-tech chips used in the iPhone. iPhone was making use of chips from both Audience Inc and Cirrus. Cirrus has stated that, it shall deal with Apple over the next few years atleast, as the chips that Apple requires for decrypting audio signals, is available with them. Cirrus stated in a press meet that, the company has touched the 270 million dollars to 300 million dollars mark for the third financial quarter while the financial analysts had estimated just the mark of 237.7 million dollars.
As iPhone 5 is gaining top spot in the market, Cirrus Logic Inc has gained net profit amounting to 35.4 million dollars in the third quarter. This has risen from 11.2 million dollars that was reported in the second quarter. The profit has risen by 51 cents per share from 17 cents per share. While excluding the other items of Cirrus, the total share price has touched a hike of 79 cents per share. The revenue generation for Cirrus Logic for audio products has increased to 178 million dollars in the third quarter, which was just 83.6 million dollars in the second financial quarter.
Tech gurus and financial analysts have stated that, as iPhone 5 is gaining popularity in the market; Apple will have to make use of chips manufactured by Cirrus to maintain supply according to the demand in the market. Spokespersons from Apple have stated that, Cirrus Logic Inc has been doing well by supplying the chips required in the new iPhone 5.