User interface maker Synaptics admitted Friday that its touchpad technology is being used in the new iPod products unveiled earlier this week, squelching rumors that Apple Computer was using its own proprietary technology.
Synaptics filed a Form 8-K with the Securities and Exchange Commission saying that while it believes itis inappropriate "to comment on unconfirmed rumors and speculation" about its business dealings, "we are confirming that our interface solutions are being used (by Apple Computer)" in the new 6 gigabyte (GB) iPod mini as well as the 30GB and 60GB color iPod photo.
The admission comes after Bear Stearns analyst Andrew Neff recently cut his price target on Synaptics (SYNA) and his rating on the stock to "peer perform" from "outperform," saying Apple was reducing its dependence on Synaptics technologies in favor of others. As a result, the companyis stock took a beating, dropping from around US$40 to $24 in a five day period.
Wall Street analysts believe Synaptics had no choice but to respond to the rumors and set the record straight. It is common knowledge among component manufacturers that Apple does not like its suppliers publicly acknowledging the details of its relationships.
As a result of the Synaptics report, company shares soared as much as 18.42% Friday before 11 a.m. EST, to more than $24.00 a share.
The filing also revealed its interface solutions are shipping in music players offered by five different digital music player makers, and it has secured design wins with two other companies.