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'iPhone 5' Won't Feature Audience Technology? Chip Maker Seems To Think Apple Wants Distance

Apple To Walk Away From Major Partnership Ahead Of iPhone 5?
Reuters
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FILE-In this Monday, June 11, 2012, file photo, Apple CEO Tim Cook walks on stage during the Apple Developers Conference in San Francisco. Makers of consumer electronics are refreshing their products for the holiday shopping season. Apples rivals are hoping that a head start on the buzz will translate into stronger sales. Nokia and Microsoft, in particular, are trying to generate interest in a new Windows operating system out next month. (AP Photo/Marcio Jose Sanchez, File)

(Reuters) - Audience Inc, which makes chips used in Apple Inc's iPhone, said its top customer is unlikely to use its technology for the next-generation mobile phones, sending the company's shares down 46 percent in extended trading.

The company sells processors and patents its technology to Apple and its units under an agreement, amended in March, the company said.

This transition will not impact Audience's financial results for the third quarter but would affect it a quarter after Apple starts to sell its next-generation mobile phones.

Audience shares were down at $10.11 in trading after the bell. The stock closed at $18.86 on the Nasdaq on Thursday.

(Reporting By Aurindom Mukherjee in Bangalore; Editing by Joyjeet Das)

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