Chip maker shares drop

SHARES in Wolfson Microelectronics have continued their five-month descent, dropping a further 10.7 per cent after the company cut its sales forecast.

The Edinburgh-based audio chip maker said it had become "increasingly cautious" as more and more of its customers were losing out to rival Apple. Yesterday it said its full-year revenue would grow by less than ten per cent, missing analysts' expectations.

Wolfson, whose chips are best-known for tasks such as converting digital data into analogue signals, has failed to generate a full-year profit since it lost a contract to supply its audio chips to Apple's iPhone in 2008.