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

streaming black friday 2025

Black Friday Streaming Deals Include Big Savings on Disney+, Hulu, Apple TV, and More

Monday November 24, 2025 8:03 am PST by
We've been focusing on deals on physical products over the past few weeks, but Black Friday is also a great time of year to purchase a streaming membership. Some of the biggest services have great discounts for new and select returning members this week, including Disney+, Hulu, Paramount+, Peacock, and more. Note: MacRumors is an affiliate partner with some of these vendors. When you click a...
Apple Foldable Thumb

Foldable iPhone to Debut These Three Breakthrough Features

Tuesday November 25, 2025 7:09 am PST by
Apple's first foldable iPhone is expected to launch alongside the iPhone 18 Pro models in fall 2026, and it's shaping up to include three standout features that could set it apart from the competition. The book-style foldable will reportedly feature an industry-first 24-megapixel under-display camera built into the inner display, according to a recent JP Morgan equity research report. That...
General Black Friday Deals 25 Red

Apple Black Friday Deals Available Now on AirPods, iPads, Accessories, and More

Friday November 21, 2025 8:48 am PST by
We're only a few days away from Black Friday, which will take place on Friday, November 28 in 2025. As always, this will be the best time of the year to shop for great deals, including popular Apple products like AirPods, iPad, Apple Watch, and more. In this article, the majority of the discounts will be found on Amazon. Note: MacRumors is an affiliate partner with some of these vendors. When...
General Apps Messages Redux

Singapore Orders Changes to iMessage by December

Tuesday November 25, 2025 6:39 am PST by
Singapore has ordered Apple to block or filter messages on iMessage that impersonate government agencies, requiring the company to implement new anti-spoofing protections by December as part of efforts to curb rising online scams, the Straits Times reports. Singapore's Ministry of Home Affairs (MHA) said that it had issued an Implementation Directive to Apple under the Online Criminal Harms...
iOS 26

iOS 26.2 Adds These New Features to Your iPhone

Thursday November 20, 2025 10:50 am PST by
iOS 26.2 is currently in beta testing. The upcoming update includes a handful of new features and changes on the iPhone, including a new Liquid Glass slider for the Lock Screen's clock, offline lyrics for Apple Music, and more. In a recent press release, Apple confirmed that iOS 26.2 will be released to all users in December, but it did not provide a specific release date. Keep reading...
maxresdefault

The MacRumors Show: iPhone 18 Pro Looks Like a Huge Upgrade

Friday November 21, 2025 9:10 am PST by
On this week's episode of The MacRumors Show, we talk through all of the new features and improvements expected to come to next year's iPhone 18 Pro and iPhone 18 Pro Max models. Subscribe to The MacRumors Show YouTube channel for more videos Apple's next-generation iPhones are less than ten months away and we already have a good idea about what to expect based on corroborated leaks, rumors,...
iOS 26 on Three iPhones

iOS 27 Will Reportedly Have Two Key Upgrades

Sunday November 23, 2025 8:48 am PST by
iOS 27 will reportedly have two major elements: quality improvements and new AI features. In his Power On newsletter today, Bloomberg's Mark Gurman said that iOS 27 will be similar to Mac OS X Snow Leopard, in the sense that Apple is focused on improving "quality and underlying performance" over adding new features. Gurman said there is one exception to this rule, though, as he expects...
apple news banner

Apple News Loses CNN

Monday November 24, 2025 7:56 am PST by
American multinational news company CNN has abruptly pulled its content from Apple News, Semafor reports. CNN quietly removed its stories from Apple News over the weekend and there is no longer a feed from the network to subscribe to in the app. This effectively ends its distribution agreement with Apple while the two sides negotiate new terms. Discussions are apparently ongoing and CNN's...
Apple Foldable Thumb

Crease-Free iPhone Fold on Track for 2026 Launch as Development Advances

Monday November 24, 2025 10:25 am PST by
Apple is making progress on the development of the book-style foldable iPhone expected in 2026, according to a report from Chinese site UDN. The device has reportedly entered the engineering validation stage, and Apple is gearing up for mass production. Citing supply chain sources, UDN says that Apple has solved "the crease problem" that has plagued most foldable smartphones, and the...

Top Rated Comments

Cougarcat Avatar
173 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
173 months ago

Ugh, with a pun that bad…can you blame Apple? :D
Score: 22 Votes (Like | Disagree)
twiggy0 Avatar
173 months ago
Down 40%? Ouch.
Score: 17 Votes (Like | Disagree)
LagunaSol Avatar
173 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
173 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
173 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)