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In 1876, Emile Berliner invented the first microphone used as a telephone voice transmitter. At the U.S. Centennial Exposition, Emile Berliner had seen a Bell Company telephone demonstrated and was inspired to find ways to improve the newly invented telephone.
Although the performance of this kind of microphone is poor by today's standards (inherently noisy with high distortion), it was a significant step forwards at the time and was the enabling technology for voice telephony. The modern term of 'microphone' also appears to have been coined by Hughes.