Apple 'Unlikely' to Use Audience's New Noise Suppression Technology in iPhone 5

Audience today announced that it appears "unlikely" Apple will use the company's earSmart noise suppression technology in the upcoming iPhone 5. Audience's technology was reported to a key innovation providing support for Siri on the iPhone 4S, and Apple was reported back in February to have licensed Audience's next-generation technology for future products. But with today's announcement, it appears that Apple has elected not to take advantage of the technology.

Audience sells processors and licenses its processor IP to Apple Inc. and certain of its subsidiaries (collectively, OEM) for inclusion in the OEM's mobile phones pursuant to a Master Development and Supply Agreement (MDSA). Pursuant to a statement of work under the MDSA, amended in March 2012, Audience developed and licensed a new generation of processor IP for use in the OEM's devices. However, the OEM is not obligated to use Audience's processor IP.

Audience now believes that it is unlikely that the OEM will enable Audience's processor IP in its next generation mobile phone. Audience is not aware of any intended changes by this OEM to its use of Audience's processors or processor IP in prior generations of the OEM's mobile phones.

audience earsmart
Apple's decision not to use Audience's new IP in the iPhone 5 will impact Audience's financial picture beginning one quarter after the introduction of the iPhone 5, as Audience receives licensing royalties from Apple one quarter after the device's are sold to end users.

Peter Santos, president and chief executive officer, commented, "While we are disappointed by this development, we are confident in the diversification of our business and see sustainable growth in 2012 and beyond. As such we are raising guidance for the third quarter of 2012. Looking ahead, we believe our expansion into adjacent markets such as Smart TVs, automotive, and notebooks, will continue to bring growth in 2013 and beyond."

Audience delivered a standalone voice processing chip for the iPhone 4, but the company's technology was reportedly incorporated directly into the A5 chip used to power the iPhone 4S. The improved Audience technology integrated into the A5 was said to be much better at suppressing background noise, thus allowing Siri to more easily pick out the user's voice.

It is unclear what voice processing technology Apple will be using in the iPhone 5, but it seems that the company has found a better or more cost-effective solution than that offered by Audience.

Update: Audience's stock is down over 40% in after-hours trading following the announcement.

Related Forum: iPhone

Popular Stories

iPhone 17 Pro 3 4ths Perspective Aluminum Camera Module 1

New iPhone 17 Pro Details: Brighter Display, Best Battery Life, and More

Wednesday September 3, 2025 5:33 am PDT by
Apple's iPhone 17 Pro and iPhone 17 Pro Max models will feature a number of significant display, thermal, and battery improvements, according to new late-stage rumors. According to the Weibo leaker known as "Instant Digital," the iPhone 17 Pro models will feature displays with higher brightness, making it more suitable for use in direct sunlight for prolonged periods. The iPhone 16 Pro and...
iPhone 17 Pro Iridescent Feature 2

iPhone 17 Pro Clear Case Leak Reveals Three Key Changes

Sunday August 31, 2025 1:26 pm PDT by
Apple is expected to unveil the iPhone 17 series on Tuesday, September 9, and last-minute rumors about the devices continue to surface. The latest info comes from a leaker known as Majin Bu, who has shared alleged images of Apple's Clear Case for the iPhone 17 Pro and Pro Max, or at least replicas. Image Credit: @MajinBuOfficial The images show three alleged changes compared to Apple's iP...
iphone 16 pro ghost hand

iPhone 17 Pro: 5 Reasons Not to Upgrade This Year

Monday September 1, 2025 4:35 am PDT by
Apple will launch its new iPhone 17 series this month, and the iPhone 17 Pro models are expected to get a new design for the rear casing and the camera area. But more significant changes to the lineup are not expected until next year, when the iPhone 18 models arrive. If you're thinking of trading in your iPhone for this year's latest, consider the following features rumored to be coming to...
iPhone 17 Pro Iridescent Feature 2

iPhone 17 and iPhone 17 Pro Prices Estimated Ahead of Apple Event Next Week

Tuesday September 2, 2025 1:50 pm PDT by
Just one week before Apple is expected to unveil the iPhone 17 series, an analyst has shared new price estimates for the devices. Here are J.P. Morgan analyst Samik Chatterjee's price estimates for the iPhone 17 series in the United States, according to 9to5Mac: Model Starting Price Model Starting Price Change iPhone 16 $799 iPhone 17 ...
iPhone 17 Pro Dark Blue and Orange

iPhone 17 Release Date, Pre-Orders, and What to Expect

Thursday August 28, 2025 4:08 am PDT by
An iPhone 17 announcement is a dead cert for September 2025 – Apple has already sent out invites for an "Awe dropping" event on Tuesday, September 9 at the Apple Park campus in Cupertino, California. The timing follows Apple's trend of introducing new iPhone models annually in the fall. At the event, Apple is expected to unveil its new-generation iPhone 17, an all-new ultra-thin iPhone 17...
iOS 18 on iPhone Arrow Down

Apple Preparing iOS 18.7 for iPhones as iOS 26 Release Date Nears

Sunday August 31, 2025 4:35 pm PDT by
Apple is preparing to release iOS 18.7 for compatible iPhone models, according to evidence of the update in the MacRumors visitor logs. We expect iOS 18.7 to be released in September, alongside iOS 26. The update will likely include fixes for security vulnerabilities, but little else. iOS 18.7 will be one of the final updates ever released for the iPhone XS, iPhone XS Max, and iPhone XR,...
iPhone 17 Pro on Desk Centered 1

Survey: Nearly 70% of Users Plan to Upgrade to iPhone 17

Monday September 1, 2025 8:24 am PDT by
A new survey has found that nearly seven in ten iPhone owners in the United States plan to upgrade to an iPhone 17 model, signaling strong demand ahead of Apple's expected unveiling of the devices at its September 9 keynote. Smartphone price comparison platform SellCell surveyed over 2,000 U.S.-based iPhone users in August to assess upgrade interest and brand loyalty before Apple's event....

Top Rated Comments

Cougarcat Avatar
170 months ago
I'm not sure this is front page material..

It's more front page material than "Tim Cook and Jony Ive Top Vanity Fair's 'The New Establishment' List" and the Laurene Powell Jobs stories.
Score: 33 Votes (Like | Disagree)
Yujenisis Avatar
170 months ago
MacRumors content image

Ugh, with a pun that bad…can you blame Apple? :D
Score: 22 Votes (Like | Disagree)
twiggy0 Avatar
170 months ago
Down 40%? Ouch.
Score: 17 Votes (Like | Disagree)
LagunaSol Avatar
170 months ago
I must say, it seems Apple are often reluctant to include latest technologies in their devices. For example, the Nokia Lumia 920 announced this week has wireless charging. Apple have said they're not including NFC payments with the iPhone 5 and now this noise thing. I know Apple are often about coming up with their own technologies, but other phones will be more up to date than the iPhone 5 even before it comes out.

Apple have never been ones to check items off a spec sheet. Sometimes technologies that have not yet fully-ripened or if the usage demand is not there, they may not make the cut. It has nothing to do with being "up to date."

Wireless charging is not as compelling a feature as you may think. The Palm Pre had it - no one cared.

NFC, maybe.

If Apple included a built-in comb on the next iPhone, would that make all Android devices "out of date?" ;)
Score: 12 Votes (Like | Disagree)
WildCowboy Avatar
170 months ago
I'm not sure this is front page material..

It's pretty darn rare for an Apple partner to speak publicly about an unannounced product, even to say their stuff won't be used.
Score: 11 Votes (Like | Disagree)
3282868 Avatar
170 months ago
Translation:

"Apple bought rights to the company, secured it's IP, then decided against using it in their mobile device line, thereby screwing said company. Due to Apple's 'arrangements', said company may not use this IP in other mobile devices, but may venture into other device markets. Company's stock dove after announcement."

Good job Apple. Buy out tech, keep it, don't use it, sink it. Rinse. Repeat.
Score: 9 Votes (Like | Disagree)