Wolfson Microelectronics shares got a boost after analysts revealed the chip maker was again supplying tech giant Apple for the first time in three years.
Although the Apple Lightning adapter, which uses the Wolfson chip, is expected only to sell in small volumes, Peel Hunt said it was a “major positive” that Wolfson was working with US giant again.
In 2008, the Edinburgh firm lost a contract to provide chips for the iTouch and iPod, which caused its shares to shed a quarter of their value in a day.
Peel Hunt anlayst Alex Jarvis said a “teardown” of the new Apple adapter revealed it contained a Wolfson audio chip. The adapter was developed after Apple controversially revealed plans to change the plug on the new iPhone 5, which meant users would not be able to connect to older devices unless they bought the £25 connector.
She said: “Apple remains a significant revenue opportunity for audio hubs and mics and any news that confirms an improving relationship with Apple is positive.” Peel Hunt upgraded the firm’s shares from “hold” to “buy”.
Wolfson declined to confirm its deal with Apple, as it “operates under strict customer confidentiality clauses”. But in its interim results in June, it said it had “secured design-ins with five new smartphone customers”.
“Any new customer relationship would normally start with relatively modest projects until confidence is built,” Wolfson said. The shares rose 4.3 per cent to 210.25p.