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.

Start your day with The Independent, sign up for daily news emails
ebooks
ebooksA special investigation by Andy McSmith
Latest stories from i100
Have you tried new the Independent Digital Edition apps?
Independent Dating
and  

By clicking 'Search' you
are agreeing to our
Terms of Use.

iJobs Job Widget
iJobs Money & Business

Recruitment Genius: Customer Relations Officer

£13000 per annum: Recruitment Genius: This is an exciting opportunity to join ...

Ashdown Group: Junior Application Support Analyst - Fluent German Speaker

£25000 - £30000 per annum + benefits: Ashdown Group: A global leader operating...

Recruitment Genius: Evening Administrator

£8 per hour: Recruitment Genius: This Pension Specialist was established early...

Guru Careers: Executive Assistant / PA

£30 - 35k + Bonus & Benefits: Guru Careers: We are seeking an Executive Assist...

Day In a Page

Homeless Veterans campaign: Donations hit record-breaking £1m target after £300,000 gift from Lloyds Bank

Homeless Veterans campaign

Donations hit record-breaking £1m target after huge gift from Lloyds Bank
Flight MH370 a year on: Lost without a trace – but the search goes on

Lost without a trace

But, a year on, the search continues for Flight MH370
Germany's spymasters left red-faced after thieves break into brand new secret service HQ and steal taps

Germany's spy HQ springs a leak

Thieves break into new €1.5bn complex... to steal taps
International Women's Day 2015: Celebrating the whirlwind wit of Simone de Beauvoir

Whirlwind wit of Simone de Beauvoir

Simone de Beauvoir's seminal feminist polemic, 'The Second Sex', has been published in short-form for International Women's Day
Mark Zuckerberg’s hiring policy might suit him – but it wouldn’t work for me

Mark Zuckerberg’s hiring policy might suit him – but it wouldn’t work for me

Why would I want to employ someone I’d be happy to have as my boss, asks Simon Kelner
Confessions of a planespotter: With three Britons under arrest in the UAE, the perils have never been more apparent

Confessions of a planespotter

With three Britons under arrest in the UAE, the perils have never been more apparent. Sam Masters explains the appeal
Russia's gulag museum 'makes no mention' of Stalin's atrocities

Russia's gulag museum

Ministry of Culture-run site 'makes no mention' of Stalin's atrocities
The big fresh food con: Alarming truth behind the chocolate muffin that won't decay

The big fresh food con

Joanna Blythman reveals the alarming truth behind the chocolate muffin that won't decay
Virginia Ironside was my landlady: What is it like to live with an agony aunt on call 24/7?

Virginia Ironside was my landlady

Tim Willis reveals what it's like to live with an agony aunt on call 24/7
Paris Fashion Week 2015: The wit and wisdom of Manish Arora's exercise in high camp

Paris Fashion Week 2015

The wit and wisdom of Manish Arora's exercise in high camp
8 best workout DVDs

8 best workout DVDs

If your 'New Year new you' regime hasn’t lasted beyond February, why not try working out from home?
Paul Scholes column: I don't believe Jonny Evans was spitting at Papiss Cissé. It was a reflex. But what the Newcastle striker did next was horrible

Paul Scholes column

I don't believe Evans was spitting at Cissé. It was a reflex. But what the Newcastle striker did next was horrible
Miguel Layun interview: From the Azteca to Vicarage Road with a million followers

From the Azteca to Vicarage Road with a million followers

Miguel Layun is a star in Mexico where he was criticised for leaving to join Watford. But he says he sees the bigger picture
Frank Warren column: Amir Khan ready to meet winner of Floyd Mayweather v Manny Pacquiao

Khan ready to meet winner of Mayweather v Pacquiao

The Bolton fighter is unlikely to take on Kell Brook with two superstar opponents on the horizon, says Frank Warren
War with Isis: Iraq's government fights to win back Tikrit from militants - but then what?

Baghdad fights to win back Tikrit from Isis – but then what?

Patrick Cockburn reports from Kirkuk on a conflict which sectarianism has made intractable