CSR seeks iPod application to give headphones a wireless future
CSR's chips would allow Apple to manufacture iPods with wireless headsets, an increasingly popular feature of mobile devices among consumers. Apple has sold more than 22 million iPods and although it is possible to buy separate adapters that connect an iPod to earphones wirelessly, the music players do not come with Bluetooth as a standard.
CSR confirmed it had approached Apple after publishing a bullish trading update yesterday that showed sales of its chips, which enable devices to provide wireless connections using the Bluetooth technology standard, are rising faster than expected. Its shares jumped 14 per cent, or 77.5p.
The company's market share has risen from 51 per cent in the first three months of this year to 56 per cent in the second quarter, according to Paul Goodridge, the finance director. Its Bluetooth chips are being installed in more than 60 per cent of all new devices that are given official Bluetooth design accreditation.
The market for Bluetooth chips is being driven by booming demand from mobile phone manufacturers and growing applications for personal computers, such as wireless headsets to make telephone calls over the internet. CSR said one-fifth of all new mobile phones shipped in the second quarter of this year had Bluetooth wireless technology. That proportion is expected to rise in the third quarter, the company said.
Legislation to ban motorists from holding mobile phones while driving is also increasing demand for Bluetooth headsets, with laws being introduced in Chicago, for instance, boosting the relatively undeveloped US market for wireless connections. Mainstream car manufacturers such as Ford have also started building Bluetooth technology into dashboards. This allows in-coming calls to be routed through a car's stereo system, cutting out music when a call is received and starting it again when the call ends without drivers needing to take their hands off the wheel.
Mr Goodridge said: "A year ago it was just people like BMW and Audi doing it. Now it's Nissan, Toyota, Renault and Ford putting it into their dashboards." CSR said this year it expected third-quarter sales of $125m-$135m (£70m-£75m) compared with $94m in the second quarter. An increasingly strong market means its sales are expected to hit $155m-$160m in the third quarter. The market as a whole is expected to see 270 million Bluetooth chips supplied this year compared with 140 million in 2004.
"We are now seeing all the top tier of phone makers putting Bluetooth in their products," Mr Goodridge said. New, higher capacity Bluetooth technology that handles more data at high speed will also shortly be available, further expanding the market, he added.
The company's trading statement said the strong demand in the current third quarter which ends on 30 September is expected to continue into October and November, with the run-up to Christmas expected to deliver a further boost to the company's shipments.
- 1 Bruce Jenner's 'Interview of the year': Suicidal thoughts, rejection by family members and new wardrobe
- 2 Sofyen Belamouadden murder: The inside story of a crime that horrified Britain
- 3 How to turn off/stop 'seen by' on Facebook: Disable it to make your chats seem less passive aggressive
- 4 'We're not heroes, just tourists': Swedish police officers on holiday stop vicious assault on New York subway
- 5 Buckingham Palace guard who attacked passers-by in 'most most violent piece of CCTV footage' police officer had seen walks free
Bruce Jenner's 'Interview of the year': Suicidal thoughts, rejection by family members and new wardrobe
Top 20 misconceptions people believe are true
Sofyen Belamouadden murder: The inside story of a crime that horrified Britain
'We're not heroes, just tourists': Swedish police officers on holiday stop vicious assault on New York subway
Nepal earthquake: More than 1,100 killed across four countries and in Mount Everest avalanche
The sickening truth about food banks that the Tories don't want you to know
Katie Hopkins on LBC: Listen to caller taking The Sun columnist to task over migrant comments
Migrant boat disaster: Ukip candidate mocks victims in sickening Twitter post
Nigel Farage wants the BBC to stop making programmes like Doctor Who, Strictly Come Dancing, and Top Gear
Global warming: Scientists say temperatures could rise by 6C by 2100 and call for action ahead of UN meeting in Paris
Rupert Murdoch berated Sun journalists for not doing enough to attack Ed Miliband and stop him winning the general election
iJobs Money & Business
£50000 - £55000 per annum: Ashdown Group: Business Analyst - Financial Service...
£18000 - £23000 per annum + OTE £45K: SThree: At SThree, we like to be differe...
£20000 - £25000 per annum + competitive: SThree: Did you know? SThree is the o...
£22000 - £24000 per annum: Recruitment Genius: This is an opportunity to join ...